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The ongoing turmoil surrounding Bybit’s recent hack continues to impact Ethereum’s (ETH) performance and market sentiment, triggering widespread discussions.
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Despite the external pressures, Ethereum remains a focal point for both institutional investors and traders, indicating mixed signals in its recovery potential.
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Star Xu, CEO of OKX, emphasized the misleading nature of allegations alleging his platform’s involvement in the Bybit hack, stating, “This is incorrect and misleading.”
Ethereum faces challenges following the Bybit hack, with ongoing market sentiment affecting its price amid mixed outlooks from stakeholders.
U.S. ETH ETFs Experience Significant Outflows Amid Market Uncertainty
The aftermath of the Bybit hack has weighed heavily on Ethereum, exemplified by significant outflows from U.S. spot ETH exchange-traded funds (ETFs). In the past three weeks, these ETFs have reported outflows surpassing $500 million, highlighting a reactionary trend as investors navigate recession fears.
Interestingly, this trend has resulted in consistent product bleed-out for six consecutive days, with outflows peaking at $21.5 million on Tuesday and $37.5 million on March 10th.
Source: Soso Value
This risk-off sentiment has led to a decline in ETH value, reaching a two-year low of $1,700, which mirrors levels seen before the recent bull cycle commenced. Despite this decline, analysts express a dichotomy of sentiments; some remain optimistic about a possible rebound.
For instance, Titan of Crypto noted that Ethereum’s current market structure bears resemblance to previous cycles of Bitcoin (BTC), suggesting a potential V-recovery that could lead to price resurgence.
Analyst Predictions: Mixed Outlook for ETH Recovery
As Ethereum’s market challenges continue, analysts convey varied predictions regarding its future trajectory. Pseudonymous analyst Crypto Rover suggested that Ethereum could rise to an impressive $8,000, drawing from previous trends and historical resistance levels that marked significant price peaks.
Source: X
However, current indicators reflect a more cautious sentiment from traders on platforms like Deribit, where options traders are pricing in less than 1% probability for ETH to reclaim the $4,000 mark by the end of March.
Source: Deribit
Future Prospects: Will the Pectra Upgrade Drive Recovery?
As Ethereum remains at a crossroads, many investors are scrutinizing the potential impacts of the upcoming Pectra Upgrade. While its effectiveness in spurring recovery is uncertain, some market analysts posit that technological advancements could provide the necessary momentum to shift market sentiment favorably.
Ultimately, Ethereum’s ability to recover from its current predicament hinges on external factors, including broader market stability and investor confidence amidst shifting regulatory frameworks.
Conclusion
In summary, while Ethereum navigates the fallout from the Bybit hack and faces mixed sentiments from market participants, the potential for recovery persists. Analysts present a spectrum of insights, underscoring varying recovery scenarios alongside the need for cautious optimism. Investors must stay informed and adaptive to the evolving landscape as the completion of the Pectra Upgrade approaches.
