Ethereum has entered its most severe February decline in years. The second-largest cryptocurrency by market capitalisation has experienced a price drop of approximately 25% this month. Market data confirms the asset reached a multi-week low of $2,310 before staging a modest recovery.
Historically, February has been a positive month for Ethereum. According to market analytics firm Spot on Chain, ETH has only recorded one negative February performance prior to this year, occurring in 2018. The current downturn represents a significant deviation from established patterns.
Macroeconomic headwinds are contributing to the sell-off. New tariffs imposed by US President Donald Trump have intensified concerns about global economic constraints. Traditional markets have come under pressure from these policies. Consequently, risk assets like cryptocurrencies have suffered, pushing Ethereum below the $2,400 threshold.
A security incident at cryptocurrency exchange Bybit has exacerbated market instability. The Bybit hack resulted in the theft of $1.4 billion in digital assets, predominantly Ethereum. ETH lost 7% of its value in the immediate aftermath of the incident. Bybit has since replenished its reserves by securing 446,870 ETH through a combination of whale deposits, loans and direct purchases.
"We have fully recovered our losses and are preparing an audited proof-of-reserves report to reassure our users," confirmed Bybit CEO Ben Zhou. Despite these assurances, Ethereum has struggled to break above $2,800. This failure indicates persistent selling pressure across the market.
ETH experienced a sharp 14% decline within a 24-hour period earlier today. The asset briefly touched $2,310 before recovering slightly to approximately $2,400. It has failed to maintain key support levels over the past seven days. This technical breakdown has sparked concerns about potential further declines among market participants.
Looking at the monthly performance metrics, Ethereum began February trading at $3,217. It has since shed more than $800 in value. The asset has declined by 7.3% over the past week, reinforcing bearish market sentiment. CoinGecko data shows that its 24-hour movement saw the price fall from a daily high of $2,733 to current levels.
Market analysts have issued warnings about Ethereum's immediate prospects. With the cryptocurrency failing to maintain support at $2,400, the next significant support level is identified at $2,250. Technical indicators suggest this could expose the asset to additional downside risk. Ethereum's difficulties mirror broader market conditions. Bitcoin has also experienced pressure, dropping below $90,000 despite Strategy (formerly MicroStrategy) recently acquiring $1.99 billion worth of the cryptocurrency.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.