Ethereum DeFi Exploiter Returns $50,000 to “Nurse” Affected by $5m Attack
DeFi Despite positive technological developments, the decentralized finance (DeFi) space is still rife with hacks and exploits. This much was made clear just recently, when $7 million was siphoned out of a cryptocurrency vault based on Ethereum. While many users have been adversely affected by this exploit, the unknown attack did make a move to return some of the funds.
On Saturday morning, Ethereum and DeFi analysts noticed that an extremely unusual transaction had taken place.
A user had withdrawn 80,000 ETH worth of flash loans from Aave, along with $116 million in flash loans from Uniswap, according to analysts. The user subsequently used that capital to manipulate the price of stablecoins on Curve to withdraw around $7 million from Value DeFi, a yield aggregator protocol.
In total $7.5 million was stolen, though $2 million of that sum was returned to the deployer address for the Value DeFi protocol. It has become common practice for DeFi attackers to return some funds to the deployer address of the protocols they hack, seemingly as a sign of pity for users affected by the exploit.
Many users were affected by this attack. Many users lost a large amount of capital in the attack as the attacker drained most of the funds in the pool affected by the exploit.
The issue is that the attacker is pseudonymous: they covered up their tracks to not tie their addresses or DeFi transactions to any centralized entity, meaning they could run off with the funds and do as they please.
Some have attempted to contact the attacker, by embedding messages into Ethereum transactions.
One supposed “nurse” claimed that they had put $100,000 worth of stablecoins into the protocol hoping to earn a yield, though lost a large chunk of that transaction.
Surprisingly, the DeFi attacker responded by donating $50,000 worth of stablecoins to the user.
There are some that doubt the story of the nurse, though they say that it is somewhat reassuring nonetheless that the attacker has a heart.
The attacker also returned $50,000 to a “19 years old freshman from UK”. The DeFi user wrote to the attacker:
“dear hacker, I am a 19 years old freshman from UK. I really learned this 200k worth of lesson and it is causing a huge problem within my family. My grandparents and my parents sent me their life saving for high yield return that I boasted about. If my family find this out, they might kill me. I will be grateful if you can send the fund back and I will return them to my family. God bless you.”
These stories cannot be verified.
Author: About The Author
Ethereum Bulls Facing Stiff Resistance Despite ETH 2.0 Fervor
Ethereum incurred a near-term price slump over the weekend after momentum stalled around the $475 resistance level. The ETH/USD pair has subsequently recovered back above the $450 level and found strong support from just below the $440 level.
With the launch of ETH 2.0, investors are growing increasingly confident that further price appreciation can occur as deposits and demand for ETH steadily increases.
Still, technical analysis shows that ETH bulls need to surpass the $475 level this week to stop the potential formation of a bearish double-top price pattern.
If this near-term bearish scenario occurs, then the ETH/USD pair could face heavy selling pressure back towards the lower end of its recent range, near the $425 to $415 area.
If ETH buyers manage to break above the $475 resistance level this week, then a test of the Jul. 16, 2018, high is very likely.
If the psychological $500 barrier is surpassed, traders would then eye a break towards the $515 and $550 resistance zones, respectively.
Interestingly, the Williams Alligator indicator, a key trend-based indicator, is still flashing a strong buy signal, pointing to further gains so long as the price holds above $450.
On-chain withdrawal transaction data currently shows a diminishing trend in withdrawals versus rising price, implying traders are holding on to their coins for long-term gains. This metric is used by traders to show the amount of all incoming and outgoing transactions involving ETH withdrawal addresses.
A sharp spike to the downside in exchange withdrawals suggests shallow selling pressure for the number two altcoin.
Data analysis from on-chain behavioral platform Santiment also shows that from Nov. 9, Ethereum addresses holding 10,000 to 1,000,000 coins started to accumulate their balances again.
This metric suggests that some whales have begun to accumulate more coins towards the ETH 2.0 roll out dates.
Addresses holding more than 1,000,000 coins seem to have been continuously increasing their portfolios, which may lead to buying pressure for Ethereum in the following days.
Given the strong on-chain data surrounding Ethereum and increased bullish sentiment from the ETH 2.0 rollout, it is fair to expect more near-term price pressure if the ETH/USD pair holds above the $440 to $450 area.
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The Analyst Team
Crypto Weekly Roundup, November 16, 2020: Bitcoin continues ascent towards all-time highs
The Bitcoin buying frenzy continued this week, with cryptocurrency markets rallying alongside stocks on the prospect of a Biden presidency coupled with a split Congress. This would likely lead to legislative gridlock, leaving Biden unable to push through planned tax hikes.
News of a COVID-19 vaccine briefly dented the crypto rally on Monday, before the upswing continued. Bitcoin then hit a 2020 high above $16K on Friday, just as new Covid-19 cases in the US reached another daily record of over 180,000.
Meanwhile, altcoins have found mixed fortunes. Litecoin is leading the charge with 13% weekly gains, while Bitcoin Cash has slipped 6% after a contentious hard fork split the coin in two for a second time.
Another billionaire has become a cryptocurrency investor. Stanley Druckenmiller, who formerly managed money for George Soros, sung the praises of Bitcoin on CNBC last Monday, claiming the asset could perform better than gold: “If the gold bet works, the Bitcoin bet will probably work better.”
Just two days later, hedge fund titan Ray Dalio dismissed Bitcoin, but overall, institutional interest in cryptocurrency has skyrocketed in November: Funds are flowing into institutional crypto investment firm Grayscale at a record rate, and open interest for Bitcoin futures on the CME surged to near all-time highs last week at $934 million.
The lights went out on Ethereum last Thursday, after a bug in the code split the network’s transaction history in two. As a result, blockchain infrastructure providers including Infura and Blockchair were cut off from the network, leading several crypto exchanges to briefly disable withdrawals of ETH and ERC-20 tokens.
Yet despite fears that the network had broken, the price of Ethereum didn’t even flinch, finishing flat on the day and rising 1% over the week.
As Bitcoin pushes past the $16k milestone, calls for a pullback are growing louder. Peter Brandt has pointed out on Twitter that during the 2015-2017 crypto bull market, Bitcoin made nine significant corrections, averaging a 37% drop each time.
Bitcoin 2017 — present day
So far however, Bitcoin has only fallen a maximum of 10% since early September, which could be due to the larger presence of institutions leaping in to buy when price starts to fall.
In the coming week, escalating coronavirus cases across the US are likely to continue bolstering Bitcoin’s safe haven appeal. And if the upswing continues, we could soon be challenging the record high of $20,000.
Author: By eToro
Ethereum Forecast and Analysis November 16 — 20, 2020 • PumpMoonshot
Ethereum ETH/USD ends the trading week at 462.48 and continues to move as part of the growth and formation of the “Triangle” pattern. Moving averages indicate a bullish trend for ETH/USD. Prices went up from the area between the signal lines, which indicates pressure from cryptocurrency buyers and a potential continuation of growth from the current levels. At the moment, we should expect an attempt to develop a slight downward correction and a test of the support level near the 405.05 area. Where can we expect a rebound again and continued growth in the rate and value of Ethereum with a potential target above the level of 575.65.
An additional signal in favor of raising the ETH/USD quotes in the current trading week on November 16 — 20, 2020 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the option of growth in the value of the cryptocurrency in the current trading week will be a fall and a breakdown of the level of 325.05. This will indicate a breakdown of the support area and a continued fall in ETH/USD quotes with a potential target below the level of 265.05. Confirmation of the growth of the Ethereum cryptocurrency will be a breakdown of the resistance area and closing of quotations above the level of 510.05, which will indicate a breakdown of the upper border of the “Triangle” model.
Ethereum Forecast and Analysis November 16 — 20, 2020 implies an attempt to test the support area near the level of 405.05. Where can we expect a rebound and continued growth of the cryptocurrency to the area above the level of 575.65. An additional signal in favor of a rise in the Ethereum rate will be a test of the support line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the 325.05 area. In this case, we should expect a continuation of the decline with a target below the area of 265.05.
Author: by PumpMoonshot
Ethereum Could Narrowly Avoid a Major Correction if it Reclaims $460
Ethereum Could Narrowly Avoid a Major Correction if it Reclaims $460
Ethereum started a downside correction below the $460 support level against the US Dollar. ETH price is now trading below $450 and it remains at a risk of more downsides.
Ethereum started a downside correction after it failed to clear the $480 resistance zone. ETH price broke the $465 and $460 support levels to move into a short-term bearish zone.
There was also a close below the $460 level and the 100 hourly simple moving average. Ether price extended its decline below the $450 support and tested the $440 level. A low is formed near $440 and the price is currently correcting higher.
It surpassed the $445 level, plus there was a break above the 23.6% Fib retracement level of the recent decline from the $462 high to $440 low. The price is now approaching the $450-$452 resistance zone.
Source: ETHUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $453 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $462 high to $440 low. The next major resistance is near the $460 level and the 100 hourly simple moving average.
A successful close above the $460 level and the 100 hourly simple moving average could start a fresh increase. In the stated case, the price could rally towards the $478-$480 resistance zone.
If there is no upside break above the $452 and $460 resistance levels, ethereum might extend its decline. An initial support is near the $445 level.
The main support is now forming near the $442 and $440 levels. Any more losses could trigger a larger decline towards the $432 and $425 support levels in the near term.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now approaching the 50 level.
Major Support Level – $440
Major Resistance Level – $460
Author: About The Author