A death cross, when the 50-day moving average crosses below the 200-day moving average, has been formally confirmed by Ethereum. The indicator could be a herald of progressing pressure on the market, pushing Ethereum even lower. However, things are turning surprisingly good for the second-biggest cryptocurrency on the market, even despite the most recent hack.
The ETH movement from Bybit’s cold wallets is one of the main factors influencing its price action. A significant security breach at the cryptocurrency exchange resulted in the transfer of more than $1 trillion in assets linked to Ethereum.
Ben Zhou, the CEO of Bybit, acknowledged that although a hacker took advantage of a weakness in the exchange’s cold wallet system, the total assets of the business are still far greater than the amount that was taken. The market sentiment surrounding ETH appears to have stabilized as a result of this assurance, which stopped panic selling.
On the other hand, on-chain data indicates that significant volumes of stETH and mETH are being exchanged for ETH on decentralized exchanges, bolstering price action and short-term demand. Traders are now focusing on important resistance levels, as ETH continues to show surprising strength despite the finalized death cross.
The psychological $3,000 mark, which is in close proximity to the 50-day moving average, represents the next significant obstacle. Some of the bearish implications of the death cross may be refuted by a breakout above this level.
Ethereum could still decline to $2,700 or even lower though if it is unable to maintain its rally, particularly if the mood of the market as a whole declines. For the time being, unusual conditions are driving Ethereum’s recovery. Depending on how soon Bybit fixes its security breach and whether buyers can keep control above critical technical levels, this rally may or may not be sustainable.
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