Ethereum price analysis: Short traders in profit as ETH loses $2,500 support despite Bybit hack resolution

• Ethereum price plunged 7%, trading as low as $2,327 on Thursday after losing the $2,500 psychological support. 
• Ethereum bulls record $99 million LONG Liquidation losses, outpacing short liquidations by 40%. 
• With a death cross now in play ahead of Trump’s tariffs commencing on March 1, ETH price risks further losses. 

Ethereum price tumbled 17% in the last 48 hours. With bear traders assert dominance amid Bybit hack resolution and looming U.S. tariffs, ETH faces further downside risks.

Ethereum tumbles 5% after losing critical $2,500 support

Ethereum came under intense selling pressure this week, as the loss of its $2,500 psychological support triggered a cascade of liquidations.

ETH slid as low as $2,327 on Thursday, wiping out recent gains and intensifying bearish sentiment.

This drop follows the resolution of the Bybit hack, in which attackers—allegedly linked to North Korea’s Lazarus Group—stole over 400,000 ETH.

Initially, Ethereum held firm above $2,800 as the crypto community debated potential resolutions and their market implications.

Bybit responded swiftly, fully reimbursing customer funds and returning over 100,000 ETH to partner exchanges like Binance and Bitget, which had provided emergency liquidity.

However, Ethereum developers firmly rejected a rollback solution, leaving recovery efforts in the hands of legal authorities.

Further dampening investor sentiment, on-chain data revealed that portions of the stolen ETH were laundered through Solana-based memecoins.

This raised concerns that a full recovery of the hacked assets could be complex and drawn out, further pressuring ETH’s price.

Macroeconomic headwinds also contributed to Ethereum’s downturn. On Monday, U.S. President Donald Trump announced new tariffs on Canadian and Mexican imports, fueling inflationary fears.

The combination of growing uncertainty surrounding the Bybit hack and a risk-off sentiment driven by U.S. trade policy provided a dual catalyst for Ethereum’s sharp breakdown.

Ethereum Price Analysis | ETHUSDT, Feb 27 

After falling from $2,800 on Monday, ETH/USD rapidly plummeted by another 7% on Wednesday after it lost the $2,500 support, touching $2,225 on Binance.

Zooming out this brings Ethereum’s losses to 17% in the last 48 hours.

At press time on Friday,  ETH had opened trading at $2,336, its lowest daily opening price in over 150 days—dating back to October 2024.

With bearish pressure persisting, traders are watching closely to see whether ETH can reclaim lost ground or if further downside awaits.

Short traders gain upper hand as Ethereum liquidations cross $124 million

At press time, Ethereum appears to have stabilized around $2,300, but market uncertainty remains high.

The looming March 1 implementation of U.S. trade tariffs could prompt further risk-off behavior among investors.

Additionally, concerns persist over the potential impact of the Bybit hack proceeds on market liquidity, as the stolen ETH continues to circulate through laundering channels.

In derivatives markets, short traders are capitalizing on Ethereum’s recent slump.

According to Coinglass liquidation data, ETH liquidations surged to $124 million in the past 24 hours.

Notably, long traders bore the brunt of the losses, accounting for $99.77 million in liquidations, while short positions saw just $24.85 million liquidated.

Crypto market liquidations, Feb 27 2025 | Source: Coinglass

This means that long liquidations outpaced short liquidations by nearly 75%, indicating that bearish traders currently have the upper hand.

The imbalance suggests that many leveraged long positions were caught off guard, leading to forced sell-offs that exacerbated ETH’s price decline.

With bearish sentiment still dominating the market, short traders could look to extend their advantage in the coming days.

If ETH fails to reclaim the $2,500 mark soon, bears may continue pressing their advantage, seeking further downside targets in pursuit of amplified profits from leveraged short positions.

Ethereum price forecast: Bears could target a retest of $2,100

Ethereum price has extended its downward spiral, currently trading at $2,326 after shedding over 18% in the past three days. 

The chart signals a bearish continuation, with the formation of a death cross—where the 50-day simple moving average (SMA) at $2,933 crosses below the 200-day SMA at $3,264—cementing the broader downtrend. 

Historically, this crossover amplifies selling pressure, aligning with the recent spike in volume to 3.16 million ETH, which suggests a capitulation phase is underway.

Ethereum price forecast

The selloff gained momentum after Ethereum lost support at the 100-day SMA, triggering a cascade of long liquidations.

Consequently, ETH price is now struggling near $2,315, a level that previously acted as a pivot in early January. 

Failure to reclaim this zone could expose ETH to a retest of the $2,100 psychological threshold.

The Money Flow Index (MFI) at 37.28 indicates that selling pressure remains dominant but isn't yet in oversold territory, leaving room for further downside.

A bullish argument emerges if Ethereum manages a decisive reclaim above $2,400, invalidating the death cross’s impact in the short term. 

Given the historical tendency of Ethereum to fake traders out near critical support levels, a sharp bounce could ensue if liquidity accumulates near $2,300.

However, without a sustained push beyond the 50-day SMA, any rebound risks being a dead cat bounce within the broader bearish framework.