Ethereum explores new lows as major network vulnerability is revealed
- ETH/USD refreshed the multi-month lows at $118,24.
- Level K company discovered a serious flaw in Ethereum blockchain.
Ethereum is hovering around $123 handle, down over 11% since this time on Thursday. The third largest coin with a market value of $12.5B touched $118.24 during early Asian hours.
Ethereum's technical picture
On the intraday level, ETH/USD is sitting under SMA5 (1-hour chart), currently at $124.25. Once it is cleared, the recovery may be extended towards $130.00 (Pivot Point Monthly Support 3) and to 38.2% Fibonacci retracement level (daily) at $134.00.
On the downside, a sustainable movement under $120.00 will bring the recent low of $118.24 into focus.
The Relative Strength Index (4-hour) stays flat, close to the overbought territory; momentum indicator is attempting a recovery.
A news about the major vulnerability of major vulnerability on Ethereum blockchain might have added pressure on the third largest coin by market value.
As discovered by Level K company, focused on decentralized projects, the bug that sits in Ethereum-based cryptocurrency GasToken forces cryptocurrency exchanges pay extraordinarily high fees on ETH transactions. Bad actors could exploit the bug to make a profit.
"GasToken, which takes advantage of the refund mechanism on storage in Ethereum, allows users to store gas when the gas price is low and receive a gas refund when the gas price is high. By minting large amounts of GasToken when receiving ETH, the griefing vector mentioned above can now be a profitable attack," the company explained.
ETH/USD, 1-hour chart
Author
Tanya Abrosimova
Independent Analyst
