Ether: strong yet directionless
The DeFi space has been plagued by hacks in recent months. It appears that professional hacking groups are increasingly targeting people as the weak link, rather than the technology itself. Despite the turmoil, Ether is holding up remarkably well in this bear market. The price of ETH has been moving within a broad range for some time, without a clear direction. What does that mean? You can read more in this edition of the Market News.
Market update
In bear markets, there is usually less to say about tokens beyond Bitcoin. They tend to move in line with it, and during periods of capitulation, they often fall harder. There are occasional exceptions, but most donāt hold up for long. They break out, lead the pack for a while, then quickly slip back into the group.
Ether stands out in this bear market with a relatively strong performance. The low of February 5 was ā¬1,480, well above the ā¬1,250 low from April last year, while Bitcoin set a lower low in February.
On the weekly chart, Ether has been in a sideways phase for about four years: with no clear uptrend or downtrend. This is typically reflected in the price moving back and forth around its moving averages, which tend to flatten out. Over time, a defined trading range often forms. For Ether, that sits roughly between ā¬1,400 and ā¬4,000.
From a fundamental perspective, you would expect Ether to eventually decouple from Bitcoin, as the two coins embody different applications: digital gold (BTC) and tokenization (ETH). We are not there yet: for now, they still tend to move in the same direction. If Bitcoin takes another (significant) step down in the coming months, it is likely that Ether will drop below ā¬1,250 too.
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New hacks, same weak spots
2026 is shaping up to be a record year for hackers. Multiple incidents followed one another in a short space of time, with hundreds of millions of dollars stolen. What stands out is that it's not just technology thatās vulnerable, but also the people and processes surrounding it.
Earlier this month, the trading platform Drift wasĀ hit by an attack which exploited internal processes. Shortly thereafter,Ā a fake app appeared posing as the official app of hardware wallet manufacturer Ledger. Users who entered their recovery phrase saw their funds disappear almost immediately. More than fifty victims collectively lost millions of dollars, showing how effective an attack can be when it plays on trust and routine.
Last weekend, another incident came to light.Ā KelpDAO, a major staking protocol within the DeFi world, was hit. Through a vulnerability in the infrastructure, attackers were able to create tokens without any real value backing them. These tokens were then used in other protocols, converted, and siphoned off. More than twenty platformsĀ were forced to intervene and had to partially suspend their activities.
Although the details vary case by case, there is a clear common thread. The crypto sector is building increasingly complex systems, in which different services and protocols are interconnected. This offers many opportunities but also increases the impact if something goes wrong. One weak link can be enough to trigger a chain reaction.
For users, there is an important lesson here. Safely handling crypto means more than just relying on a platform's technology. It starts with the basics: only download apps through official channels, carefully check that you are dealing with the right party, and never share private information, such as your password or recovery phrase.
It's also wise to remain cautious when using new protocols or applications, especially when they promise high returns. Innovation moves quickly in this sector, but that also means that not everything has been proven in practice yet. If you're venturing into the DeFi world, you're often entering uncharted territory. Caution and preparation are not a luxury you can afford.
In other news
Goldman Sachs also launching its own Bitcoin ETF. Well-known ETF watchers say they areĀ āin shock' as, in a short space of time, theyāve seen nearlyĀ all major traditional financial giants enter the Bitcoin market. Goldmanās ETF is designed to generate monthly cash flow for shareholders using underlying options strategies. Similar products have already attracted hundreds of billions in the stock markets. Bitcoin is being packaged into something more familiar for traditional investors.
ECB supports plan to centralize oversight of major crypto firms. Supervision should shiftĀ from national regulators to ESMA, the European authority based in Paris. Brussels wants to prevent parties from shopping around in countries like Malta, Ireland, and Luxembourg in search of looser regulations. Several EU member states have raised concerns, particularly due to the potential impact on their local financial sectors. Negotiations on the proposal will begin in the coming months.
American Bitcoin funds attract over 1 billion dollars in inflows. Last week,Ā ETFs were in strong demand among investors. Total assets under management rose from 94 billion dollars to 101 billion dollars. Opposing these buyers are industrial Bitcoin miners; who sold overĀ 32,000 BTC in the first quarter. This is more than was sold in all of 2025. An estimated 20% of mining operations are currently running at a loss.
š is slowly taking on the character of a trading platform, putting pressure on the financial sector. Elon Musk's company has added features that significantlyĀ reduce the gap between discussing an asset and actually buying it. The company is also testingĀ š Money, a suite of payment services, including a digital wallet and payment card. Musk's goal is to turn š into anĀ everything app,Ā essentially an American version of WeChat. For the first time, that vision is starting to look like a real, tangible product.
Satoshi Radio: InĀ the latest episode of Satoshi Radio, signal and noise take turns. From persistent theories about the origins of Bitcoin to concrete developments at major players such as Goldman Sachs and Deutsche Bƶrse. There is also attention to the darker sides of the sector, with a Ledger scam that cost users millions. The hosts discuss how š is increasingly becoming a financial platform. As always, the market update concludes the episode.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.