(Akash Girimath – FXStreet)
– Bitcoin price has crashed roughly 9.7% in the last 24 hours.
– Although early bulls were punished on the recent sell-off, investors can expect a recovery rally to $25,000.
– if Bitcoin price flips the $18,293 support level, it will invalidate the bullish outlook.
Bitcoin price has single-handedly crashed the entire crypto market as it tumbled below a crucial support level. As of this writing, BTC is still yet to find a stable support level and hatch a recovery plan. Altcoins, including Ethereum and Ripple, are already working on bouncing back.
Bitcoin price ready to make a U-turn
Bitcoin price surprised a lot of investors as it exploded to $22,850, but since then, it has caught more users off guard as it slipped below the previous weekly low at $18,500 and collected the sell-stop liquidity. Moreover, it is also close to the June 18 swing low at $17,593.
While investors might feel the pain in the short term, this move is helpful to set up a base for a potential recovery move back to $25,000. Therefore, this bearish outlook is an opportunity for patient BTC investors.
A sweep of the previous low is reason enough for Bitcoin price to take a u-turn, but market participants might be better off waiting until the June 18 swing low at $17,593 is swept. This liquidity run is critical to trigger the next leg-up to the weekly open at $19,405.
Flipping this level into a support floor could catalyze Bitcoin price to extend its up move and tag the $20,737 hurdle, which is the penultimate target. The $25,169 level, which is August month’s swing high, is likely what the market makers are seeking and could be a good place to book profits.
On the other hand, if the buyers fail to come through, it could knock the Bitcoin price lower and flip the $18,293 support level into a resistance barrier. This move will indicate a weak bullish front and also invalidate the bullish outlook.
Such a development could lead to a cascading price drop to the next support floor at $15,550.
Ethereum PoW sees ‘replay’ exploit for 200 ETHW days after rocky start
(CoinDesk Analysis Team)
Ethereum PoW, the version of the Ethereum blockchain that continues to run on a proof-of-work (PoW) consensus mechanism, experienced a replay exploit over the weekend due to a faulty third-party contract.
Developers of Ethereum PoW were alerted of the issues and immediately took steps to rectify the problem.
The blockchain was established as a fork of the Ethereum network, which switched to a proof-of-stake (PoS) consensus mechanism on Thursday in an event known as the Merge. The PoS network now continues as Ethereum.
The replay exploit refers to the same transaction being duplicated on both chains when they’re not supposed to.
This means if a user transacted on Ethereum PoW, the same was executed on Ethereum – which eventually allows attackers to illicitly trick smart contracts into releasing tokens from one chain, even as the actual transaction was executed on another chain.
Attackers used the Omni bridge of the Gnosis network to conduct the exploit. Some 200 weighted ether (wETH) was transferred through the bridge on Saturday, and the same transaction was replayed on the PoW chain – resulting in the attacker gaining 200 ETHW, or approximately $1,600 at the time.
Faulty data from the Ethereum PoW network’s Chain ID used by a contract caused the issue, security firm BlockSec said in a tweet. A Chain ID is a set of numbers used by the browser-based crypto wallet MetaMask to sign transactions for the network. An incorrect Chain ID causes transactions to fail because users aren’t connected to the correct network, rendering a network unusable.
BlockSec warned that the issue might eventually cause the balance of the chain contract deployed on the PoW chain to “be drained.”
Meanwhile, Ethereum PoW developers said in a Sunday post that the attack exploited the contract vulnerability of the bridge, and not their blockchain itself.
“We have contacted the bridge in every way and informed them of the risks,” it said. “Bridges need to correctly verify the actual ChainID of the cross-chain messages,” the developers wrote.
As such, the network saw glitches on its first day with users stating they weren’t able to access the blockchain’s servers using public information provided by Ethereum PoW. CoinDesk verified the claims and wasn’t able to access Ethereum PoW’s web servers using those links provided, as reported.
ETHW tokens tumbled in the past 24 hours following the exploit, falling some 37%, and extending weekly losses to over 80%, CoinGecko data shows.