ETH falls to 13-month low on Zcash bug news and Bitcoin drop to sub-$60K: Is $1.4K next?
Ether fell to a 13-month low near $1,540 as the broader crypto sell-off intensified. Derivatives turned bearish: ETH perpetual funding flipped negative, showing rising short demand, while Deribit options put demand surged, signaling heavy downside protection buying. Confidence weakened after more than $1.28 billion in leveraged longs were liquidated over five days. Sentiment also worsened as Ethereum TVL dropped to its lowest level since February 2024, with major DeFi apps seeing sharp TVL declines. Traders linked part of the risk-off move to a critical Zcash vulnerability that enabled unlimited minting, raising fears that other blockchains and smart contracts may also contain hidden bugs. Recent major DeFi hacks reinforced that concern. Despite the weakness, only about 30% of ETH supply is currently in profit, a setup that has historically sometimes preceded strong rebounds. Still, with more than $500 million in ETH longs recently liquidated and no clear support in sight, ETH could fall further below $1,550.
