# Bybit Hack: Market Funding Rates Plunge, What’s Next For Ether?

The recent Bybit hack has sent shockwaves through the cryptocurrency market, with funding rates plummeting and Ethereum (ETH) reserves on the exchange showing signs of renewed growth.

Since the infamous Bybit hack, which drained over $1.4 billion from investors, market funding rates have been experiencing a sharp decline.

This drop in funding rates is a significant indicator of the market's direction, as trade execution becomes increasingly urgent. With most traders forced to take out margin loans to cover their positions, the pressure to sell has intensified, leading to a surge in selling pressure.

However, despite this downward trend, Ethereum (ETH) reserves on Bybit have recovered significantly since the hack, indicating renewed growth and optimism among investors.

According to recent charts, ETH reserves on Bybit have risen by over 400% after the incident, with trading activities rebounding to over 200,000 ETH. While this movement is often seen as a bearish signal, most previous outflows were sales rather than general movements to other custodians.

Additionally, institutional and on-chain factors suggest that Ethereum holders have a solid position to take advantage of a price leap. With whales making huge purchases in an effort to gain from the market's swing upwards, it seems that the asset is set for a significant rebound.

Market experts believe that Ethereum will be at the forefront of the altcoin season, which has already kicked off and is expected to drive prices above $4k before reaching its cycle top.

In the last 48 hours, funding rates have hit their largest altcoin price trends, leaving investors with a crossroads. While some analysts predict that the decline in funding rates will lead to a sideways correction before the next cycle peak, others believe that this trend reversal could spur Ethereum's price above the $3k mark, setting the tone for larger gains.

With bulls pinning an altseason and crypto users remaining optimistic despite mounting fears this weekend, it seems that the market is looking towards a potential recovery. Whether this will materialize remains to be seen, but one thing is certain – Ethereum is poised for a significant ride ahead.

In terms of ETH price, at the time of writing, the asset stands at $2,676, a 4% drop in the last 24 hours. Weekly gains have also plummeted as sell pressure spiked, wiping out slight gains and setting course for a possible recovery.

While there are mixed price projections for Ethereum, one thing is clear – the market is waiting with bated breath for the next move from this iconic asset. Will it continue to dip or will it find new heights? Only time will tell, but one thing is certain – the Bybit hack has sent a wake-up call to investors worldwide.

What do you think about the current state of the Ethereum market? Share your thoughts in the comments below!

Funding Rates: A Clear Indication of Market Direction

Funding rates are pivotal to gauging the market's direction due to their direct impact on trade execution.

When funding rates turn negative, it indicates heightened selling pressure and fear-driven activity in response to the hack. If this trend persists, particularly with continued resistance at the $3K level, further declines could follow, with sellers eyeing $2.5K as the next major support.

A Trend Reversal Could Spark Ethereum's Price Above $3k

According to some analysts, a trend reversal could spur Ethereum's price above the $3k mark, setting the tone for larger gains.

This is largely dependent on institutional and on-chain factors, which suggest that Ethereum holders have a solid position to take advantage of a price leap. With whales making huge purchases in an effort to gain from the market's swing upwards, it seems that the asset is set for a significant rebound.