Key Insights
- Ethereum price consolidates around $2800 and looking for a bounceback.
- Arthur Hayes and Samson Mow are some of the proponents following the Bybit hack.
The Ethereum network experiences major difficulties following the Bybit hack that occurred just one day before. During the hack North Korean linked hackers made off with over $1.46 Billion worth of ETH.
These unfortunate events have triggered debates regarding the possibility of Ethereum taking a hard fork. A solution aims to restore stolen funds after hackers accomplished the theft.
Several crypto experts together with business CEOs maintain the fork would break Ethereum’s decentralization principles.
Some analysts insist hackers must not profit from the vast stolen funds.
At press time, Ethereum price was trading at $2795, noting a rise over 2.30% in the past 24 hours. Its market cap stood at $336.92 Billion and the trading volume soared over 23%.
Supply on Exchanges Shrinks: Will Price React?
Ethereum’s supply on exchanges declined significantly over the past few weeks, as highlighted in a recent post by @QuietnenFrancois on X. It highlights that investors were accumulating ETH, which implies a bullish sentiment.
This metric suggested that more individuals were opting to hold ETH in self custody.
Moreover, the large investors or whales continued to accumulate as ETH balance by holder value noted a spike in the past few weeks.
Despite yesterday’s hack, Ethereum crypto held its ground and bounceback over 2% in the intraday session, which highlighted signs of bottoming out.
Could a Hard Fork Reshape the Market? Key Insights
The implementation of a hard fork would create long-term effects for the future of Ethereum. Such a move could trigger an additional blockchain split comparable to the 2016 incident.
Rolling back the chain through a hard fork could lead to another split because many community members oppose this decision. This would generate another Ethereum Classic chain.
A second consequence of such an action would generate harmful implications. These recovery actions welcomed into the Ethereum system for stolen funds would establish flexibility toward future alterations.
Former BitMEX CEO Arthur Hayes stated he would support repeaters in 2016 because the Ethereum community initially voted against immutability. Why not do it again?
Since Ethereum has weakened its decentralized structure some observers see another rollback as an expected possibility.
Additionally, the decision might trigger legal complications. The potential release of stolen funds to hackers may draw intervention from regulatory organizations such as the U.S. Treasury’s Office of Foreign Assets Control (OFAC) due to suspected North Korean involvement.
Analyst Matt Kratter stated,
The Ethereum Foundation and Vitalik should continue supporting a hard fork to drain money from North Korean hackers or Vitalik and the Foundation must face legal charges for helping worldwide terrorist plots.
All in All
Despite the price consolidation, ETH price was still 35% up from the bottom and held ground.
Once it clears the $3000 mark, further price recovery could be seen and a trend reversal may come into action.
However, a break below the $2500 mark could trigger further price decline toward $2300.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
