According to the Global Capital Markets analysis team, the Kobeissi Letter, Ethereum (ETH) has shed almost 50% of its value since the end-2024 bull market run that began when President Donald Trump won the US elections. The global crypto market is also down 30% from its 3-month high of $3.895 trillion, according to Coingecko.
This week, the cryptocurrency market has mostly been trading in the red, against the backdrop of a hack that saw crypto exchange Bybit lose approximately $1.4 billion worth of Ether tokens.
Ethereum is down nearly 50% from its highs seen after the election in late-2024.
Crypto markets as a whole are nearing $1 TRILLION in losses over the last 2 months.
A sentiment shift is an understatement.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) February 28, 2025
On Friday, the second-largest crypto by market cap was trading at $2,102, a downtick of over 10.5% in the last 24 hours and 22.8% over the last 7 days. Market data shows ETH hasn’t reached that low since December 2023.
Ethereum losses continue, follows market downward trend
Data from Coinglass shows about $211M in Ethereum liquidations have occurred over the last 24 hours. Long positions accounted for $180.89 million of the total. Short liquidations stood at $29.20 million. The rapid price decline has triggered a wave of forced sell-offs, which have added even more weight to ETH’s downward price pressures.
Several market analysts on social platform X, including Cybersecurity engineer Matt C, attribute Ether’s struggles to the recent Bybit hack that purportedly created one of the largest ETH whales ever.
Matt suggested that the hacker may start selling in large volumes once the stolen funds are secured, and investors are now racing to sell their holdings before the massive sell-off kicks off.
To the Ethereum holders thinking any of this helps price:
1. The Hack created one of the biggest $ETH whales ever.
2. Once safely able, they will start net-selling their stolen stack.
3. Current holders who Don’t want to FAFO will sell Before the hackers can
4. TLDR $ETHBTC 📉 pic.twitter.com/c3f8ajtqHd— Matt C⚡️ (@mithcoons) February 22, 2025
Bybit exploiters, confirmed to be North Korea’s Lazarus Group by crypto security expert ZachXBT, have already started moving the funds and making swaps, which could worsen ETH’s woes.
ETH is hovering near critical support at $2,000, a psychological level that has historically determined the asset’s short-term direction. A drop below this threshold could open the door to further declines, with the next key support near $1,800, levels last seen during the end-2023 bear market.
Technical analysis spells doom for ETH holders
On the daily chart, Ethereum’s price movement has formed a defined descending channel. The asset recently entered a consolidation phase on the lower side of $2,300, and its next breakout could determine its future trajectory.
If Ethereum breaks its $2,500 resistance, a rally toward $2,870 could materialize, with a target of $3,400. Yet, failure to maintain its price level above $2,000 could cause the coin to continue dropping in value, for at least a couple of weeks.
The breakdown of the $2,230 support level has sent a negative signal for the short-term trading range, increasing the likelihood of further downside. Should Ethereum fail to recover, resistance will likely emerge at $2,230, limiting any potential rebound to $2,400.
Why is the crypto market down today?
The broader cryptocurrency market is currently experiencing a bloodbath, as the optimism surrounding President Trump’s pro-crypto stance begins to fade. All cryptocurrencies in the top 20 market cap rank on Coingecko, with the exception of stablecoins, have lost at least 10% of their values in the last week.
The largest crypto by market cap, Bitcoin, has fallen below $80,000, 27.6% adrift from its all-time high price of $108,786 on January 20. BTC liquidations are pushing to $500 million in the last day, dominated by long positions, with the largest market withdrawals coming from Bybit and Binance.
The crypto community still expects a favorable US regulatory environment, but the Trump administration’s lack of clear policy direction has made investors a little more cautious.
Trump confirmed on February 24 that the large tariffs on Canada and Mexico would go into effect next week, as planned in an order released on February 1. The goods are taxed 25% more because of the tariffs, and Canadian energy products are taxed an extra 10%.
The markets did not like the new tariff direction. This is similar to how people felt when Trump first warned to put tariffs on Canada, Mexico, and China on February 3.
Among the biggest losers is Ether competitor Solana, which has endured one of its worst weeks since 2024, registering a 27% decline over the past seven days. The altcoin’s price appears to be in freefall, as bulls hold off bears at the $125 support level.
