Investors’ sentiment and confidence in Ethereum, the second-largest digital asset appears to be improving in spite of recent troubling market developments that have hamper its market dynamics. Key metrics show a substantial accumulation of ETH, reflecting its position as a leading asset in the ongoing cycle.

Market Trends Changing As Ethereum CBD Decline?

Ethereum’s market dynamics are currently shifting even as the asset’s price struggles to recover crucial resistance levels. Leading on-chain data analytics and financial platform Glassnode points to a downward trend in Ethereum’s Cost Basis Distribution (CBD) metric amid fluctuating market performance.

A decrease in the cost basis distribution frequently indicates a broader change in the market’s dynamics or a rise in selling pressure. However, this is not the case for ETH right now.

According to the on-chain platform, the key metric shows that several cost bases have been moving lower, which suggests that investors have been accumulating ETH as prices have dropped. Key support for the accumulation zone is at the $2,632 level, while resistance is at the $3,149 level.

Data from Glassnode reveals that over 786,660 ETH were purchased by investors at the $2,632 support zone. Meanwhile, more than 1.2 million ETH were acquired by investors at the $3,149 resistance area. Such massive accumulation reflects investors’ strong sentiment and confidence in Ethereum’s future performance.

Glassnode noted that investors are averaging and buying ETH at lower prices rather than entirely selling their coins and exiting positions. Furthermore, a long-term conviction is reflected by the lowering cost basis, a similar trend has been observed in $MKR.

As Ethereum’s price faces heightened volatility, watching this trend is crucial as it could impact the altcoin’s trajectory in the upcoming weeks. During these uncertain periods, a large portion of ETH has been seen leaving cryptocurrency exchanges. 

Over the weekend, technical expert and Crypto Banter host Kyle Doops reported that there was a significant outflow of ETH, with netflow on derivative exchanges falling below 400,000 ETH. The number of net flows marks one of the largest in recent history.

Typically, such large withdrawals signal a potential bullish change up front and decrease selling pressure. With the altcoin trading below the $2,800 level, Kyle Doops underlined that market players may be preparing for an upward move as they wait for a change in sentiment.

A Rally To New All-Time High For ETH

After a prolonged period of weakness, ETH may be poised for a major rally to a new all-time high in the following weeks. Market technician Jonathan Carter foresees an upsurge to new levels due to a massive Ascending Triangle pattern on the weekly chart.

Ethereum is effectively holding its position above the multi-year trendline and the 100-day MA as it attempts to bounce from the ascending triangle support. Carter expects the upward momentum to push ETH’s price toward the next targets such as $3,200, $4,000, $4,850, $6,000, and $7,500.

Featured image from Unsplash, chart from Tradingview.com

Ethereum’s price trajectory has taken a sharp downturn, with technical analysis showing a possible crash to $2,000. Crypto analyst SwallowAcademy pointed out on the TradingView platform that some bearish signals are forming in smaller timeframes, especially as buyers have failed to maintain a key support zone at $2,700. Notably, the broader market downturn over the past 24 hours has only strengthened the case for further declines for Ethereum.

Ethereum Plunges Over 12% In 24 Hours As Market Suffers Steep Losses

The crypto market has taken a heavy hit, with Bitcoin falling below major support at $90,000 and shedding 6.9% over the past 24 hours. An already struggling Ethereum has fared even worse, with its price plunging 12.6% in the same timeframe. Particularly, Ethereum broke below support levels at $2,600, $2,500, and $2,400 in quick succession. 

Related Reading

This steep decline has aligned with SwallowAcademy’s warning about Ethereum’s weakness on smaller timeframes, further lending weight to the possibility of a more profound drop to $2,000. SwallowAcademy had initially emphasized that Ethereum remained in a solid buying zone due to the presence of EMAs at the $2,700 support. However, with price action shifting, the analyst acknowledges that bearish pressure on lower timeframes could open the door for further declines.

Interestingly, this Ethereum price crash in the past 24 hours came as a surprise, as bulls managed to hold above a key support level of $2,700 despite the fiasco of Bybit’s $1.5 billion hack that took place throughout the weekend. 

Although the immediate fallout from the exchange’s hack appeared contained, the market now seems to be experiencing a delayed reaction, and fear is gradually setting in among investors. This growing uncertainty, combined with persistent outflows from crypto investment products, including Spot Bitcoin and Spot Ethereum funds, has added more downward pressure on Ethereum’s price.

As it stands, the current Ethereum daily candle is firmly in the hands of sellers, with no signs of easing pressure. This is a significant change from the previously strong buying sentiment.

Bearish Momentum Could Extend To $2,000

The weakening weekly candle has tipped the scales towards more declines than a bullish uptrend, though it is still early in the week to decide. cautions that it is still early in the week. Ethereum is already trading below the EMAs in the daily timeframe, so the crucial factor is whether it can hold above the EMAs in the weekly timeframe. 

Related Reading

If the current selling momentum continues and the price breaks below $2,200, the next major downside target is $2,000 before any notable bounce can occur. 

At the time of writing, Ethereum is trading at $2,395 and is at the risk of more declines over the next 24 hours. Despite the sharp drop, the RSI has yet to reach oversold conditions, which means that sellers may still have room to push prices lower before exhaustion sets in.

Featured image from Adobe Stock, chart from Tradingview.com

• Infini neobank hacked for $49.5M USDC, swapped for 17,696 ETH.
• The attacker exploited retained admin privileges in Infini’s smart contract.
• Infini’s founder has promised full compensation, citing negligence in authority transfer.

On February 24, 2025, Infini, a Hong Kong-based stablecoin neobank blending cryptocurrency and traditional finance, experienced a devastating security breach, resulting in the loss of approximately $49.5 million in USD Coin (USDC) as earlier reported.

The exploit, first flagged by blockchain security firm CertiK at 3:18 AM UTC, has sent shockwaves through the decentralized finance (DeFi) community, underscoring persistent vulnerabilities in the crypto space, especially following the recent $1.4 billion Bybit hack on February 21, 2025.

The Infini attack

The attack targeted an Infini-related smart contract on the Ethereum blockchain, specifically the address 0x9A79f4105A4e1A050Ba0b42F25351D394fA7E1DC.

According to security analysts from CertiK, Cyvers, Blocksec, and PeckShield, a hacker gained unauthorized access by exploiting retained administrative privileges within the contract. The attacker, operating from the address 0xc49b5e5b9da66b9126c1a62e9761e6b2147de3e1, had initially developed the smart contract for Infini but retained control, unbeknownst to the project.

This insider access allowed the hacker to manipulate the contract’s settings, draining $49.5 million in USDC from what is believed to be the Morpho MEV Capital Usual USDC Vault.

Following the theft, the hacker swiftly converted the stolen USDC into Dai (DAI) and then purchased 17,696 Ethereum (ETH), valued at around $49 million at the time.

It seems that the stablecoin bank @0xinfini was hacked and 49.5M $USDC was stolen.

The hacker swapped 49.5M $USDC for 49.5M $DAI and bought 17,696 $ETH.

The 17,696 $ETH was transferred to a new wallet “0xfcc8…6e49”.https://t.co/AdAyB3q5LA pic.twitter.com/Rft6ZDtDWO

— Lookonchain (@lookonchain) February 24, 2025

The funds were then transferred to a new wallet, 0xfcc8…6e49, and split across multiple addresses, with initial funding traced to Tornado Cash, a privacy tool often used to obscure cryptocurrency transactions. However, at the time of reporting, the ETH remained unmixed, indicating ongoing efforts to trace the hacker’s movements.

Infini’s response

Infini, which launched in 2024 as a digital-only neobank offering stablecoin transactions, crypto card services, and high-yield accounts, has issued an official statement acknowledging the security breach stating that “all transfers, deposits, withdrawals, and payments remain in normal usage and working status.”

We’re aware of reports on a security compromise affecting Infini. We’re deeply sorry for the concern this causes – our team is working around the clock to investigate and secure all systems at the moment.

All transfers, deposits, withdrawals, and payments remain in normal usage…

— Infini (@0xinfini) February 24, 2025

Infini’s founder, Christian Li, took full responsibility for the exploit in a post on X, clarifying that the breach did not result from a private key leak but rather his negligence in transferring authority from the developer to the project. “My personal private key has not been leaked, so there is no need to worry too much. I was negligent when transferring the authority before. It is ultimately my responsibility. This has sounded the alarm… There is no problem with liquidity. Full compensation can be paid, and the funds are being traced,” he wrote.

Despite this reassurance, some on-chain analyses, including from PeckShield, suggest a potential private key compromise, adding complexity to the investigation.

Impact of the exploit

The exploit has raised serious questions about private key management, smart contract security, and the risks of insider threats in DeFi platforms.

Infini, which has experienced meteoric growth, boasting a 500% monthly increase in active users since its inception, particularly after launching its crypto card campaigns, now faces a critical test of its resilience. The neobank’s high-yield products, designed to attract liquidity, inadvertently provided the conditions for the exploit, amplifying the financial impact.

This incident follows closely on the heels of the Bybit exchange hack, which saw a staggering $1.4 billion drained through manipulated smart contract logic. The similarity in tactics, splitting and mixing ETH, has led on-chain investigator ZachXBT to speculate that the Lazarus hacker group, known for such methods, might be involved, though no direct link to Infini’s attacker has been confirmed.

Lazarus Group just connected the Bybit hack to the Phemex hack directly on-chain commingling funds from the intial theft address for both incidents.

Overlap address:
0x33d057af74779925c4b2e720a820387cb89f8f65

Bybit hack txns on Feb 22, 2025:… pic.twitter.com/dh2oHUBCvW

— ZachXBT (@zachxbt) February 22, 2025

The rapid succession of these high-profile breaches has reignited calls for robust security protocols across centralized and decentralized crypto platforms.

Interestingly, the influx of stolen ETH into the market has paradoxically catalyzed a small rally, pushing Ethereum’s price above $2,800 for the first time in weeks as exchanges scrambled to replenish reserves.

However, the Infini incident has also sparked concerns about potential money laundering or hostile regime financing, given the use of Tornado Cash and the scale of the theft.