Ethereum Faces Its Worst February in Years: Prices Drop by 25% Amid Market Uncertainty

Ethereum has faced significant challenges this month, losing up to 25% of its value. The cryptocurrency hit a multi-week low, dropping just above $2,300.

February Has Traditionally Been Favorable for ETH, but Not This Year

Historically, February has been a strong month for Ethereum, with the exception of 2018. However, in 2024, the situation has unfolded differently. Macroeconomic instability and market turbulence have negatively impacted the crypto asset.

Analysts attribute ETH's decline to global economic risks. New tariffs introduced by U.S. President Donald Trump have heightened concerns about a slowing global economy. This has put pressure not only on traditional markets but also on risk assets, including cryptocurrency, pushing ETH below $2,400.

Bybit Hack Worsened the Situation

Another blow to Ethereum came from the recent security breach at the crypto exchange Bybit. The attack resulted in the theft of $1.4 billion worth of crypto assets, the majority of which were ETH. Following the hack, Ethereum lost 7% of its value.

Subsequently, the exchange took measures to restore its reserves, securing 446,870 ETH through whale deposits, loans, and direct purchases. Bybit CEO Ben Zhou assured that the exchange had fully recovered its losses and is preparing a verified proof-of-reserves report. However, despite these efforts, ETH has struggled to break above $2,800, indicating continued bearish pressure.

Ethereum Drops 14% in 24 Hours

Earlier today, ETH hit a low of $2,310 before partially recovering to nearly $2,400. However, the cryptocurrency has failed to hold key support levels over the past week, raising concerns about further declines.

At the beginning of the month, Ethereum was trading at $3,217, but since then, it has lost over $800 in value. Analysts warn that if ETH fails to stay above $2,400, the next critical support level will be $2,250. A break below this level could open the door for further losses.

The Market Downturn Extends Beyond Ethereum

Ethereum is not the only cryptocurrency under pressure. Bitcoin, the largest cryptocurrency by market capitalization, is also struggling, dropping below $90,000. This decline occurred despite a recent massive BTC purchase worth $1.99 billion by Strategy (formerly MicroStrategy).

As a result, the cryptocurrency market is experiencing a turbulent period, with investors closely monitoring further developments.

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