It’s been a while since a successful malicious exploit on the Ethereum [ETH] network. Nonetheless, new reports revealed a network attack in which a malicious attacker stole a large amount of money. By interfering with MEV bot transactions, the attacker was able to steal a significant amount of ETH.
MEV stands for maximum extractable value and is a profit-determination system used by miners and other participants. This is determined by the sequence in which transactions are recorded on each block. According to initial reports, the malicious validator stole approximately $25 million by invalidating MEV bot transactions and inserting their own counterfeit transactions.
According to reports, the malicious actor responsible for the attack only recently became a validator. The attacker allegedly obtained funds and relevant tokens to carry out the attack from the Aztec privacy protocol. Although the funds lost in the hack were substantial, they were only a fraction of the funds lost in the infamous Ethereum DAO hack.
However, the incident served as a clear indication that the Ethereum network needed to do a lot more to ensure the highest level of security and prevent such incidents from happening again in the future. Concerns may also be raised about how the event will impact validators and the level of trust in the Ethereum ecosystem.
Furthermore, such incidents frequently have a negative impact on the underlying asset’s price. A look at the price performance of ETH reveals a relatively low price performance.
This meant that the news of the malicious attack had so far had little impact on the value of ETH. Over the last few days, the price of ETH has been seen fluctuating between $1,700 and $1,850.
A range exit could be in the works, so let’s take a look at what to expect based on the outcome. The most recent resistance level was close to the 0.786 Fibonacci level.
A bullish breakout could lead to the next Fibonacci retest at $2,055 in price. A strong bearish outcome, on the other hand, may result in a support retest below the 0.618 Fibonacci level, which may coincide with the $1,600 price range.
Some of ETH’s metrics indicated a decline in market confidence. At press time, for example, both the dormant circulation and development activity metrics were at their lowest four-week levels. Furthermore, ETH’s weighted sentiment reflected the aforementioned observation, despite the fact that it had experienced a slight decline since the beginning of April. This could indicate that investors’ expectations have shifted to the downside.
The sharp decrease in daily active addresses confirmed the market’s reaction after hitting a resistance wall. The eventual outcome, however, would be determined by a number of factors, including a resurgence of bullish demand, a massive sell off, and the market’s overall performance. However, with the Shanghai upgrade approaching, some excitement is to be expected.
