In the tight-knit crypto universe, any unexpected turbulence in the form of security breaches or opportunistic hacks can send the market into a whirlwind of uncertainty. A recent victim of this phenomenon can be seen in the instance of Ethereum (ETH), which took a 2% dip within 24 hours following a disruptive hack on Curve that led to a theft of approximately 2,800 ETH.
Against the backdrop of an already sombre market sentiment, the Curve hack acted as an accelerator for the ETH’s price fall. Interestingly, this seemingly gloomy event turned out to be a bit of a double-edged sword. Responsible for the exploit was a savvy bot, which, to everyone’s surprise, returned the stolen funds back to the affected DeFi platform. This intriguing action considerably softened the blow for ETH, indicating that the drop was not solely a consequence of the hack but was also pulled along by market-wide negativity.
Delving deeper into ETH’s chart elucidates that a rebound may be on the cards soon – an increasingly oversold status and its 30-day average falling significantly below the 200-day average points towards a potential upswing. However, with the support level in a consistent downward trend over the past three weeks, it is challenging to entirely sideline the likelihood of further decline before any signs of recovery.
Amid this, the big takeaway from the Curve hack was the disclosure of a vulnerability in the pools using the Vyper programming language. A language predominantly used for Ethereum development, this revelation indeed was a catalyst for ETH’s sudden drop. Nevertheless, the swift intervention of the bot restored some of ETH’s lost value and may have mitigated a more severe impact.
From a medium to long-term perspective, ETH’s recovery seems promising given its fundamentals and the continuous development of the Ethereum platform. With institutions like Deutsche Bank initiating trials using Ethereum, along with its now-deflationary tokenomics, ETH is likely to demonstrate growth, aiming to restore itself to the $1900 mark in the foreseeable weeks.
As the crypto community continues watching ETH closely, the bigger question remains around the potential for diversification and quicker gains. Some fresh entrants on the altcoin market like Wall Street Memes (WSM) appear set to offer some exciting prospects. Emerging from the meme stocks movement that catalysed the 2021 GameStop rally, WSM commands a community of over 256,000 followers and has already raised northwards of $19 million since its June presale.
As we caution investors around the highly volatile nature of crypto investments, the exciting developments around WSM and potential of new altcoins shine a glimmer of hope in the pursuit of quick gains beyond the stable yet gradual growth of Ethereum.
Source: Cryptonews
