$ETH #
Forecast: Ethereum falls after Bybit's $1.4 billion hack
Bybit's $1.44 billion ETH breach caused Ethereum to drop to $2,850.
Following the incident, Bybit CEO claimed the exchange had received bridging financing to meet rising withdrawals.
ETH must break its range-bound trend with RSI and MACD above neutral.
ETH fell to $2,850 on Friday after crypto exchange Bybit disclosed that an attacker hacked one of its wallets and stole $1.44 billion.
The crypto world expected Bybit to purchase up a lot of ETH to satisfy withdrawals, but CEO Ben Zhou said the exchange would use bridge loans.
Ethereum drops after Bybit hack.
After crypto exchange Bybit announced that one of its ETH cold wallets was hacked for $1.44 billion, Ethereum fell 6% from $2,850.
Hacker stole 401,347 ETH (~$1.12B), 90,376 stETH (~$253.16M), 15,000 cmETH (~$44.13M), and 8,000 mETH (~$23M).
According to Coinglass, the hack's concentration on Ethereum has caused $136.35 million in ETH futures liquidations in 24 hours. Long and short liquidations were $66.35 million and $70 million.
ETH was on course to recoup $2,900 before Bybit's attack, led by a 250K ETH increase in open interest (OI) to 8.90M ETH. Its OI dropped to 8.60M ETH.
In derivatives markets, open interest is the number of unresolved contracts. Rises in OI imply more traders starting positions, while declines suggest the opposite.
To recoup from the theft, many predicted Bybit would acquire ETH to compensate consumers and raise prices.
Ben Zhou, CEO of Bybit, said in an X livestream that the exchange would employ bridge loans to enable client withdrawals, not ETH.
"For immediate sake, we are currently reaching out to our partners to give us a bridge loan," said Zhou. We're not purchasing Ethereum. And even if we wanted to purchase, it's too much to move."
"We actually already secured almost 80% of the Ethereum that's been stolen as a bridge loan to give us that liquidity, to help us with the liquidity crunch, so we can pass this crucial period," said Zhou.
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