Ether retreats as DeFi exploit triggers short-term volatility in crypto markets

Ethereum slipped under $3,600 after a DeFi breach triggered a 7% decline, prompting cautious sentiment as traders assessed potential spillover risks in decentralized markets.

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Ether retreats as DeFi exploit triggers short-term volatility in crypto markets

Ether retreats as DeFi exploit triggers short-term volatility in crypto markets
Ethereum fell below the $3,600 mark after a major DeFi protocol breach prompted a wave of precautionary selling across crypto exchanges. The incident led to a 7% decline in Ether prices as traders evaluated potential contagion risks across interconnected liquidity pools. Market participants noted that although the underlying network remained stable, security concerns resurfaced within decentralized finance ecosystems. 
Analysts suggested that broader sentiment could remain cautious until clarity emerges around the vulnerability’s scope. Despite the setback, long-term network fundamentals and institutional adoption trends remain largely intact.