Ethereum News: Why Is Ethereum (ETH) Price Down Today? Key Factors Behind the Drop

Ethereum’s price has dropped over 5% in the past 24 hours, sinking toward $2,700 on Feb. 22. Several key catalysts have contributed to this decline, including the Bybit hack, growing rumors of a potential Ethereum hard fork, and a prevailing bearish market structure.Bybit Hack Triggers Ethereum Sell-OffOne of the biggest factors driving ETH lower is the $1.5 billion exploit of Bybit, which involved over 401,000 ETH and large amounts of staked ETH (stETH, mETH, cmETH).Hackers compromised one of Bybit’s Ethereum cold wallets on Feb. 21, gaining access through a deceptive multisig transaction.Investigators, including ZachXBT, linked the attack to the North Korean Lazarus Group, a cybercrime syndicate responsible for multiple high-profile crypto thefts.Market fears of the stolen ETH being dumped led to a wave of sell-offs, pressuring prices downward.Bybit has secured an emergency bridge loan covering 80% of the stolen funds, ensuring that withdrawals continue.Ethereum Hard Fork Rumors Add Market UncertaintyIn the aftermath of the Bybit hack, some crypto influencers and industry figures have called for a potential Ethereum hard fork to roll back the blockchain and recover stolen funds.Arthur Hayes (BitMEX co-founder) publicly questioned Vitalik Buterin, asking if Ethereum would fork to retrieve Bybit’s lost assets.Analyst Matthew R. Kratter accused the Ethereum Foundation of failing to stop illicit actors, suggesting they should take action.Will Reeves (Fold App CEO) argued that Ethereum's ability to reverse transactions could restore faith in the ecosystem.These calls echo the 2016 DAO hack, which led to Ethereum’s split into Ethereum (ETH) and Ethereum Classic (ETC) after a rollback. However, reversing transactions via a fork would undermine Ethereum’s credibility and set a dangerous precedent for future hacks, creating uncertainty that has weighed on the market.Bearish Market Setup Suggests Further ETH DeclineFrom a technical standpoint, Ethereum is showing signs of continued bearish momentum:Bear Pennant Formation – ETH appears to be forming a bear pennant, a pattern that suggests further downside.Potential 28% Drop – If the pattern plays out, ETH could fall toward $1,953 by March, reflecting a 28% decline from current levels.Relative Strength Index (RSI) – The RSI at 48.06 signals neutral-to-bearish momentum, with further downside possible if it dips below 40.ETH Faces Continued Downside RisksEthereum’s price drop is being driven by panic following the Bybit hack, speculation over a potential Ethereum hard fork, and a bearish technical setup. With increased selling pressure and market uncertainty, ETH could face further losses in the coming weeks unless buyer confidence returns or market conditions improve, according to Cointelegraph.