Ethereum is experiencing one of its most challenging Februaries in years, with prices plummeting by as much as 25% amid rising uncertainty in the cryptocurrency market. Just hours ago, the digital asset fell to a multi-week low of around $2,300 before staging a slight recovery.
A Red February
Traditionally, February has been a favorable month for Ethereum, usually characterized by bullish trends. According to Spot on Chain, there was only one instance of a negative outcome in February 2018. However, the current landscape paints a different picture.
Recent macroeconomic factors, such as new tariffs imposed by U.S. President Donald Trump, contribute to a less stable market environment. These developments have heightened concerns regarding a tighter global economic climate, subsequently placing traditional markets under pressure. This situation has directly influenced risk assets, including cryptocurrencies, resulting in ETH slipping below the $2,400 mark.
A security breach on the Bybit exchange, which saw the theft of approximately $1.4 billion in cryptocurrency—primarily in ETH—has further destabilized the market. Following the hack, ETH experienced a 7% devaluation. Although Bybit has since managed to replenish its reserves by securing 446,870 ETH through a combination of whale deposits, loans, and direct purchases, the remedy has yet to reinvigorate ETH’s momentum.
Bybit’s CEO, Ben Zhou, has confirmed that the exchange has fully recovered its losses and plans to release an audited proof-of-reserves report to instill confidence among users. Nevertheless, this development has done little to bolster ETH’s price stability, as it continues to struggle to surpass the $2,800 level, indicating ongoing bearish pressure.
ETH Down 14% in 24 Hours
Earlier today, ETH dipped to $2,310 before recovering slightly to nearly $2,400. Moreover, over the past week, the asset has failed to hold crucial support levels, raising concerns about possible further declines.
Starting the month at $3,217, ETH has lost over $800 in value throughout February. Its weekly performance has reflected a decline of 7.3%, further amplifying bearish sentiment among investors. In the last 24 hours, Ethereum has seen more than a 14% drop from a daily high of $2,733, based on CoinGecko data.
Analysts have cautioned that with Ethereum struggling to maintain the $2,400 support level, the next significant threshold lies at $2,250, potentially paving the way for further losses.
Ethereum’s struggles are not unique. Bitcoin, the leading cryptocurrency by market capitalization, has also encountered difficulties, recently dropping below $90,000 despite significant purchases by Strategy (formerly MicroStrategy), which acquired a staggering $1.99 billion worth of Bitcoin.
In light of these developments, market participants remain vigilant as Ethereum navigates a particularly tumultuous February.
