Ethereum’s price may have been facing significant downside pressure due to an overall market downswing, which is believed to be caused by recent negative macroeconomic conditions. However, a seasoned crypto expert predicts a transition in price behavior from bearish to bullish for ETH as the asset could be experiencing a rebound in the short term.

A Notable Price Reversal Brewing For Ethereum

Ethereum price action is eyeing a potential bullish reversal from its current downward trend. Technical expert and investor Jonathan Carter points to a bullish formation that could spark a notable upsurge to key resistance levels.

Looking at the chart in the 1-day time frame, Ethereum has formed a massive Descending Channel pattern as bearish movements extend. A Descending Channel formation is considered a bullish technical pattern formed by connecting the lower highs and lower lows with parallel trendlines. 

Once the price breaks above the upper trendline, it usually indicates that a rally could be on the horizon. As Ethereum hovers around the key technical pattern, the altcoin has formed a key support at the $2,060 level.

Jonathan Carter highlights short-term and long-term opportunities near this support level with targets at $2,360 and $2,560. In the event that Ethereum rebounds and breaks out of the descending channel, the expert foresees a move to the $3,450 mark, where the asset may witness increased buying pressure.

ETH’s breakout signals the beginning of a strong upward trend and the potential end of the ongoing correction. Should the rally continue, the next key resistance barrier to challenge is at $4,050, where the current downward trend initially began.

Analyzing the 1-week time frame, the much-anticipated reversal is capable of reaching new all-time highs in the upcoming weeks. Carter has identified a huge Ascending Triangle pattern on the weekly chart, signaling growing momentum toward the upside.

The chart shows that Ethereum is attempting to bounce from the ascending triangle support, which will propel its price into uncharted territory. Furthermore, the altcoin’s price has managed to stay above the 100-day Moving Average (MA) and the multi-year trendline. When the breakout occurs, Carter expects bullish momentum to drive prices to targets at $3,200, $4,000, $4,850, $6,000, and $7,500.

Has ETH’s Price Bottomed Out?

Recent downward trend has caused ETH to revisit a crucial level that previously led to a substantial upswing. Market expert and trader Titan of Crypto spotted the development, which indicates an impending price resurgence.

Specifically, Titan of Crypto noted that Ethereum has fallen to the 2024 low on the perpetual 1-day chart. Considering the 2024 price trend, the altcoin may have bottomed out and is gearing up for a rebound at the most significant point of interest.

Featured image from Unsplash, chart from Tradingview.com

Ethereum has experienced a massive drop, reaching its lowest level since late November 2023. The entire market has been hit by extreme volatility, uncertainty, and aggressive price swings, with ETH losing over 20% of its value in just hours. Investors fear that this correction could extend further as Ethereum struggles to reclaim key demand levels.

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Analysts are closely monitoring Ethereum’s price action, as the next few days could determine the short-term outlook for the second-largest cryptocurrency. Top analyst Ali Martinez shared a technical analysis on X, suggesting that Ethereum is on the verge of breaking out of a parallel channel to the downside. If this push below the $2,000 mark happens, ETH could be set for a deeper correction before any recovery attempts.

Ethereum’s weakness raises concerns about the broader crypto market, as altcoins have also been hit hard during this latest sell-off. Sentiment remains bearish, and traders are waiting for confirmation of whether ETH will regain strength or continue dropping toward lower demand zones. The next few trading sessions will be crucial in determining whether Ethereum can hold above critical support or if further downside is inevitable.

Ethereum Faces More Downside Risk

Ethereum’s price action has been underwhelming as the broader crypto market struggles to find stability. Despite brief rallies and sharp declines, ETH has failed to establish a clear trend, leaving investors uncertain about its future direction. The asset has been stuck in a prolonged downtrend, consistently setting new lows and reinforcing the bearish sentiment across the market.

Currently, Ethereum is trading at bear market prices with little to no signs of a sustainable recovery. As the market structure weakens, many investors expect ETH to drop even further. Analyst Martinez has highlighted a concerning development, noting that Ethereum appears to be breaking down from a parallel channel that has contained price for months. ETH could be on track for a sharp move toward $1,250, a level that would signal a deeper market collapse.

A drop to $1,250 would not only reinforce Ethereum’s bearish outlook but also serve as a key signal for a broader market breakdown. This scenario could lead to panic selling across the board, dragging other major assets lower and confirming an extended bear market. Despite occasional price swings, Ethereum remains at a critical juncture, with bulls struggling to reclaim key support levels. Unless ETH can reclaim lost ground and establish a strong support base, the risk of further downside remains high.

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With Ethereum failing to show strength amid market volatility, investors remain cautious, anticipating lower price levels before any meaningful recovery can take place. The coming days will be crucial in determining whether ETH can stabilize or if Martinez’s $1,250 target will become a reality, confirming the bearish outlook for the entire crypto market.

ETH Testing Critical Demand Level

Ethereum is trading at $2,090 after a period of weak price action, marking a 30% decline since February 24. This significant drop has left investors questioning whether ETH can maintain its long-term bullish structure or if a deeper correction is imminent.

Currently, Ethereum is at a critical support level that must hold to sustain any hope of a bullish continuation. A breakdown below this level would likely confirm a bear market scenario, pushing ETH toward lower price levels as selling pressure intensifies. The uncertainty surrounding Ethereum’s price action has left traders cautious, as any further weakness could accelerate the decline.

However, a recovery remains possible if ETH can reclaim the $2,500 resistance level. Such a move would signal renewed buying momentum and could spark a strong recovery, potentially reversing the recent bearish trend. If Ethereum manages to flip $2,500 into support, it would indicate renewed confidence in the asset and set the stage for higher price targets.

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For now, all eyes are on Ethereum’s ability to defend $2,090. The coming days will be crucial in determining whether ETH can stabilize or if the market is heading toward a more prolonged bearish phase.

Featured image from Dall-E, chart from TradingView

• Bybit CEO has said that 20% of the $1.4B stolen from the exchange is now untraceable.
• Hackers converted $1B in ETH to BTC via THORChain and spread it.
• So far, 11 bounty hunters have assisted in freezing $42M of the stolen funds.

In a stunning update, Bybit CEO Ben Zhou has revealed that $280 million of the $1.4 billion stolen from the cryptocurrency exchange in the February hack has vanished into untraceable channels.

3.4.25 Executive Summary on Hacked Funds:
Total hacked funds of USD 1.4bn around 500k ETH, 77% are still traceable, 20% has gone dark, 3% have been frozen.
Breakdown:
– 83% (417,348 ETH, ~$1B) have been converted into BTC with 6,954 wallets (Average 1.71 btc each) . This and…

— Ben Zhou (@benbybit) March 4, 2025

The security breach, attributed to the North Korean hacking group Lazarus, saw approximately 500,000 Ether (ETH) pilfered from Bybit’s reserves. While the majority of the funds remains visible on the blockchain, Zhou’s announcement underscores the challenges facing investigators as they race against time to freeze the assets before the hackers fully cash out.

The attack exploited vulnerabilities in SafeWallet, a third-party wallet platform used by Bybit. Lazarus hackers compromised a developer’s device, injecting malicious code that allowed them to siphon off nearly $1.5 billion in ETH during a routine transfer.

Despite Bybit’s swift action to restore 1:1 backing of client assets within days, the hackers have been relentlessly moving the stolen funds across multiple platforms, complicating recovery efforts.

Hackers leveraged THORChain to fragment funds

A significant portion of the stolen Ether—417,348 ETH valued at around $1 billion—has been converted into Bitcoin (BTC) and scattered across 6,954 wallets, each holding an average of 1.71 BTC.

Zhou noted that 72% of the haul, or 361,255 ETH worth $900 million, was funneled through THORChain, a decentralized exchange known for its privacy features.

THORChain alone processed a record $4.66 billion in swaps in the week ending March 2, raking in over $5.5 million in fees from these illicit transactions. This fragmentation and conversion strategy has made tracking the funds increasingly difficult for blockchain forensic teams.

Meanwhile, 20% of the stolen assets—approximately 79,655 ETH—have “gone dark,” meaning they’ve been laundered through platforms like ExCH and rendered untraceable.

Zhou highlighted that an additional 40,233 ETH, worth $100 million, passed through OKX’s Web3 Proxy. Of this, 23,553 ETH ($65 million) remains untraceable without further cooperation from the OKX Wallet team, while 16,680 ETH is still within reach of investigators.

The CEO stressed that the next one to two weeks are pivotal as the hackers prepare to offload their haul via exchanges, over-the-counter (OTC) trading desks, and peer-to-peer (P2P) networks.

Bybit has enlisted bounty hunters amid freezing efforts

In a bid to thwart the hackers, Bybit has enlisted the help of bounty hunters and security firms.

Zhou reported that 11 parties—including prominent players like Mantle, Paraswap, and blockchain sleuth ZachXBT—have assisted in freezing $42 million, or 3% of the stolen funds.

So far, Bybit has paid out $2.178 million in USDT to these contributors as part of its recovery efforts, with more details available at Lazarusbounty.com. The exchange also partnered with Web3 security firm ZeroShadow on February 25 to enhance its blockchain forensics and maximize asset recovery.

Despite these efforts, the hackers show no signs of slowing down. Blockchain analytics firm Elliptic has identified over 11,000 wallets linked to the Lazarus group, suggesting a sprawling network designed to obscure their tracks.

🚨 Free Real-time Bybit Exploit Data 🚨

Elliptic has launched a free data feed of illicit addresses linked to the Bybit exploit.

🔍 Why it matters:

✅ Minimize exposure to sanctions
✅ Stop laundering of stolen funds
✅ Strengthen crypto security

Access via CSV or API ⬇️… pic.twitter.com/U9Qa2tc8Zz

— Elliptic (@elliptic) February 25, 2025

Zhou indicated that an additional $65 million in ETH could be salvaged with OKX’s support, but time is running out as the attackers continue laundering operations through platforms like ExCH and OKX Web3 Proxy.