Ether’s Path to $3,000: Investor Sentiment Shifts After Crypto Exchange Breach and Large-Scale Buyback

Ether’s price is at a critical point following the Bybit exchange hack on Feb. 21, in which over $1.4 billion worth of liquid-staked Ether and other digital assets were stolen. This attack is now the largest crypto theft in history, with the North Korean state-affiliated Lazarus Group identified as the main suspect. In response, Bybit has purchased over 106,498 Ether worth about $295 million in over-the-counter trades, recovering nearly 50% of its pre-hack Ether supply. This buying pressure contributed to a 5.38% rise in Ether’s price within two days of the breach.

Despite the recent volatility, some analysts maintain that Ether’s long-term outlook remains strong. The co-founder and chief operating officer of Redstone blockchain oracle solutions believes that Ethereum’s fundamentals will eventually be reflected in its price. The continued involvement of institutional investors adds to confidence in its long-term trajectory.

While Ether’s price remains under pressure, factors such as Bybit’s recovery efforts, declining exchange reserves, and institutional interest could influence whether it moves past the $3,000 mark. For now, market sentiment will be crucial in determining the next direction.