Ethereum Faces Worst February on Record as Market Pressures Mount

Ethereum has taken a significant hit, tumbling below $2,500 after an 8% drop, marking what could be its worst February on record.

The cryptocurrency, which typically sees gains during this period, has instead suffered a 23% decline this month, raising concerns among investors. Broader market instability, compounded by recent regulatory developments in the U.S., has put additional pressure on ETH.

Despite this downturn, large investors remain undeterred. Data from CryptoQuant reveals that major Ethereum holders, controlling between 10,000 and 100,000 ETH, have been steadily increasing their positions, signaling confidence in the asset’s long-term potential. At the same time, Ethereum’s dominance in the stablecoin sector remains strong, accounting for over half of the market’s total capitalization.

Meanwhile, fallout from the Bybit exchange hack continues to unfold. The platform has moved swiftly to manage its financial obligations, repaying a $100 million loan in ETH within three days.

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However, hackers responsible for the attack have already moved a significant portion of stolen funds, with reports indicating that over 89,500 ETH—valued at $224 million—has been laundered. Efforts to liquidate the remaining balance through cross-chain swaps are underway.

Looking ahead, Ethereum’s trajectory remains uncertain. Optimism surrounds the recent approval of its spot ETF, which some analysts believe could trigger a major altcoin rally. Additionally, the upcoming Pectra upgrade on the Holesky testnet is expected to bring further advancements to the network, potentially shaping ETH’s future performance.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.