The price of Ethereum (ETH) has dropped by 17% in the last 48 hours, falling below the $2,500 support level. The decline follows the resolution of the Bybit hack, where over 400,000 ETH was stolen. Bybit has fully reimbursed customers and returned some of the stolen ETH to partner exchanges. However, Ethereum developers have rejected a rollback solution, leaving the recovery effort in the hands of legal authorities. On-chain data has shown that portions of the stolen ETH were laundered through Solana-based memecoins, raising concerns about a full recovery. Macroeconomic factors, such as new US trade tariffs and inflationary fears, have also contributed to Ethereum's decline. Short traders are capitalizing on the slump, with long traders experiencing the brunt of the losses. The bearish sentiment in the market suggests that further downside risks are possible if ETH fails to reclaim the $2,500 mark. The chart signals a bearish continuation, with a death cross formation indicating a broader downtrend. The Money Flow Index indicates that selling pressure remains dominant but is not yet in oversold territory. A bullish argument could emerge if Ethereum reclaims the $2,400 level, but without a sustained push beyond the 50-day SMA, any rebound risks being a dead cat bounce within the broader bearish framework.



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