Ether falls 7% following a multimillion dollar hack of a decentralized finance protocol
Representation of Ethereum along with its native cryptocurrency ether.
Dado Ruvic | Reuters
Ether It dropped as much as 9 percent on Monday, falling below the critical $3,600 support level, shortly after a million-dollar attack affected a protocol on the token’s local network.
According to CoinMetrics data, the cryptocurrency last issued on Ethereum was around $3,600, down 6.6 percent. That’s about 25% off its Aug. 22 high of $4,885.
The coin’s decline comes after Ethereum-based decentralized finance protocol Balancer likely lost more than $100 million in an attack on Monday. This exploit marks the latest in a series of bearish events that have put digital asset investors on edge over the past few weeks.
In mid-October, US President Donald Trump announced “massive” tariffs on China for restricting rare earth exports, setting off a flight of investors from crypto into risk-averse assets like gold. Although the president later walked back the threat, his comments sparked a selloff that triggered the gradual liquidation of highly leveraged digital asset positions.
Last week, Federal Reserve Chairman Jerome Powell warned investors to expect future interest rate cuts, adding to the current bearish trend in the market.
“These events have put investors in an uneasy position as we head into November,” Bitwise senior investment strategist Juan Leon told CNBC. “Despite macro volatility, this October’s decline appears to be a healthy, albeit sharp, deleveraging event that removes speculative excess from the market.”
Some stocks tied to digital assets are also coming under pressure. coinbase Bitcoin treasury company as its shares fall almost 4% Strategy It decreased by over 1 percent.
