On Tuesday, ZKsync (ZK), an Ethereum layer-2 scaling solution, suffered a security exploit. Hackers compromised its admin wallet and minted 111 million unclaimed ZK tokens that were withdrawn, worth $5 million. The ZK token price collapsed in the aftermath of the incident. It immediately fell close to 19% before recovering to finish down 5% for the day. Bitcoin (BTC) has found a new level of support near $83,500. During the month that followed, it was repeatedly rebuffed just below its 200-day Exponential Moving Average (EMA) at $85,000. Ethereum (ETH) is struggling to break past the $1,700 resistance level, worsening its balance sheet.
ZKsync Suffers Admin Wallet Breach
As reported by Cointelegraph, the entire ZKsync ecosystem suffered a monumental crushing when one of its primary devs/admin wallet was hacked. The attacker used this vulnerability to mint 111 million unclaimed ZK tokens, leading to a $5 million windfall.
This security incident had an instant effect on the market value of the ZK token. The price dropped almost 19% in the immediate wake of the news, before rebounding to finish on the day down just over 5%. The breach raises important questions regarding the security practices for layer-2 scaling solutions. It also shines a light on the dangers associated with centralized administrator wallets.
The incident underscores the importance of robust security measures and regular audits for blockchain projects, particularly those handling large sums of digital assets. The community deserves to know more about this investigation, and what steps are being taken to prevent such breaches from occurring again.
Bitcoin's Struggle for Breakout
Bitcoin price still appears to be settling around the $83,500 level as of Wednesday. This price stabilization follows many unsuccessful attempts to bust through the 200-day EMA at $85,000. The 200-day EMA is a widely followed technical indicator employed by traders to see which direction the long-term trend is headed for an asset.
BTC has seen lower highs ever since, with consistent rejections at the $85,000 level from Sunday onward. Yet, on Tuesday, Bitcoin jumped once more to try and bust through this barrier once again. Opposition was fierce and it ended the day down 1.12%. This mark has recently made for a formidable ceiling for BTC bulls.
Bitcoin is back baby! On Friday, it jumped up to around $82,500 after reaching a new year-to-date low of $74,508 earlier this week. The Relative Strength Index (RSI) on the daily chart flattens around its neutral level of 50, indicating indecisiveness among traders. To maintain this bullish momentum, the RSI needs to push back above this neutral level on a clear basis.
Ethereum Faces Resistance
ETH price headwinds Ethereum price downtrend remains under pressure, failing to even challenge resistance at the $1,700 psychological level. The ETH market last week found support at daily level of $1,449 resulting in a modest upward recovery. It has a difficult obstacle at the $1,700 ceiling, which is its hardest resistance.
After being rejected again by the $1,700 level on Monday, ETH closed Tuesday down 2.15% as bears took control. Currently, Ethereum is hovering around $1,590.
The daily chart RSI remains under 40. This stance is under the neutral threshold of 50, which is a sign of bearish momentum. ETH price is currently having a difficult time breaking above the major resistance levels. The bearish RSI reading suggests near-term downside risk.
