Ethereum Market Impact: Analyzing Bybit’s $1.5B Hack and Its Aftermath

In March 2025, Bybit, a major cryptocurrency exchange, suffered a devastating hack resulting in the loss of $1.5 billion worth of Ethereum (ETH). This incident sent shockwaves through the crypto market, triggering a sell-off and affecting liquidity. However, Bybit demonstrated resilience by recovering significantly in the weeks that followed. A detailed postmortem by BlockScholes highlights the broader implications of the hack, including its impact on bid-ask spreads and market stability. This analysis delves into the repercussions of the attack and how Ethereum’s market dynamics were influenced during this period.

How Did Bybit’s $1.5B Hack Affect the Crypto Market? An In-Depth Analysis

Less than two months ago, the crypto exchange Bybit fell victim to one of the largest attacks in the crypto sector’s history, losing about $1.5 billion in ether (ETH) to cyber criminals. The sell-off that followed the incident was not unique, and Bybit significantly recovered from the effects of the attack. A postmortem report by BlockScholes reveals how deeply the hack affected the broader crypto market, bid-ask spreads, and the role of Bybit’s new Retail Price Improvement (RPI) orders in the platform’s recovery.

Ethereum (ETH) Consolidates Within Tight Range

Ethereum (ETH) prices have surged by over 3% in the past day along with a broader crypto market upswing. However, on-chain data from Glassnode reveals ETH is trading in a tight range between $1,548 and $1,599, hinting at potentially prolonged sideways movement. The asset’s cost basis distribution (CBD), which shows the price levels at which current ETH holders bought their coins, indicates this development. CBD is an important on-chain metric used to identify potential support or resistance levels.

Ethereum Slips Below ‘Mayer Multiple’ Level; Price Struggles Continue

The Ethereum token has faced significant bearish pressure in recent months, losing almost half of its value in Q1 2025. The announcement of new trade tariffs by US President Donald Trump exacerbated the decline, along with the rest of the altcoin market. Despite the suspension of these tariffs, Ethereum failed to hold above the $1,600 level, emphasizing its ongoing struggles. Crypto analyst Cryptollica suggested that the price of Ethereum could be at a pivotal point.

Ethereum Inverse Head and Shoulders Pattern May Spark Reversal

Beneath Ethereum’s recent price stagnation lies a potentially explosive setup in the form of a near-perfect inverse head and shoulders pattern. This pattern, which includes a “left shoulder,” a deeper “head,” and a “right shoulder,” suggests that ETH may be preparing for a significant price move. Historically, this pattern has preceded some of Ethereum’s most dramatic rallies.