The post Why Ethereum Price Is Down 4% Today appeared on BitcoinEthereumNews.com.

Ethereum (ETH) price has recorded a 4% decline in the past 24 hours, trading below $2,650 at press time. The drop follows reports of a security breach at cryptocurrency exchange Bybit, which confirmed an unauthorized transfer of approximately 401,347 ETH, valued at $1.12 billion, from its cold wallet. The breach involved an attack that manipulated the transaction signing process, allowing the hacker to redirect funds to an unidentified address. Bybit Hack Triggers Ethereum Price Decline The breach at Bybit has led to heightened concerns among investors, contributing to Ethereum price decline. The attack was carried out by exploiting a vulnerability in the multisig cold wallet, altering the signing interface while keeping the displayed address unchanged. This allowed the unauthorized transfer of ETH, stETH, and other assets. The confirmation of the hack caused an immediate market reaction, with Ethereum price dropping from $2,850 to $2,750 within an hour. The stolen funds began moving to multiple addresses, intensifying fears of further sell-offs. The movement of stolen assets to decentralized exchanges raised concerns about increased selling pressure in the market. Following the breach, Bybit CEO Ben Zhou assured users that client funds remain safe and that all assets are backed on a one-to-one basis. However, investor sentiment remained uncertain, as the scale of the attack affected confidence in centralized exchanges. Trading Volume Surges Amid Market Uncertainty Alongside Ethereum price drop, trading volume surged by over 82%, reaching $29.46 billion within 24 hours. This increase suggests that traders reacted swiftly to the hack, either selling assets or repositioning portfolios in anticipation of further volatility. Source: CMC A rise in trading volume often signals increased market activity, with both buyers and sellers reacting to major developments. In this case, the uncertainty surrounding Bybit’s ability to recover the stolen funds contributed to the heightened trading levels.…

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Filed under: News - @ February 22, 2025 10:14 am