Ethereum Market Analysis: Navigating Through the Current Correction

Ethereum experienced a significant 10% price decline, dropping below the crucial $3,000 psychological level to reach $2,701 amid a broader cryptocurrency market sell-off. This downward movement was primarily driven by the unwinding of leveraged positions, resulting in over $150 million in long position liquidations. The correction mirrors similar patterns in speculative technology stocks and AI-related equities as investors reassess valuations following extended bullish rallies. Despite this short-term volatility, Ethereum's fundamental strengths remain intact, including its dominant position in decentralized finance, robust developer ecosystem, and ongoing network upgrades. Market analysts suggest this correction represents a healthy market recalibration rather than a fundamental breakdown, potentially creating attractive entry points for long-term investors. The leverage-induced selling pressure appears to be temporary, with Ethereum's underlying technology and adoption metrics continuing to show strong growth potential. Historical patterns indicate that such corrections often precede renewed bullish momentum as weaker hands are shaken out and stronger, conviction-driven capital enters the market.

Ethereum Plunges 10% as Leveraged Positions Unwind Amid Broad Crypto Sell-Off

Ethereum (ETH) tumbled below $3,000 for the first time in months, shedding 10% in 24 hours amid a market-wide retreat from risk assets. The drop mirrors declines in speculative tech stocks and AI-related equities, with investors scrutinizing valuations after months of aggressive rallies.

Leverage exacerbated the move. Over $150 million in long positions were liquidated, accelerating ETH’s descent to $2,701—a 15% weekly drop. The asset now trades 45% below its August peak, trapped in a descending wedge pattern with critical support NEAR $2,930.

Thin order books and perpetual futures contracts amplified volatility. 'When sentiment flips, liquidations compound downward pressure,' one trader noted, describing the cascade of automated sell orders. Ethereum’s slide outpaced Bitcoin’s decline, reflecting its heavier use in decentralized finance (DeFi) leverage.

Base Network's Top DEX Aerodrome Investigates Suspected DNS Hijacking Attack

Aerodrome Finance, the leading decentralized exchange on Coinbase's Base network, has confirmed a suspected DNS hijacking attack compromising its centralized domains. Users were urged to avoid accessing the platform through primary .finance and .box domains, with the team directing traffic to secure ENS-hosted mirrors instead.

The breach exposed users to malicious signature requests designed to drain multiple assets including ETH and USDC through unlimited approval prompts. While smart contracts remain secure, the frontend compromise created phishing risks for unwary users approving suspicious transactions.

Protocol developers detected anomalous activity six hours before public alerts, immediately flagging domain provider Box Domains as potentially compromised. The incident highlights ongoing security challenges in DeFi infrastructure despite blockchain immutability assurances.

Ethereum Whale Accumulation Hits $241M Amid Price Correction

Ethereum's recent price decline to $2,730 has triggered aggressive accumulation by institutional players, with on-chain data revealing $241.8 million in whale purchases during November's selloff. The '66,000 Borrowed Whale' address alone added $162.7 million worth of ETH, now holding 432,718 ETH ($1.23 billion).

Exchange reserves have contracted to 15.6 million ETH—a 55-month low—as Bitmine and other whales absorbed 17,242 ETH ($49M) from institutional custodians. This divergence between price action and accumulation suggests sophisticated investors are positioning for a potential reversal.

Liquity Price Projection 2025-2031: Growth Potential Amid DeFi Innovation

Liquity, the decentralized borrowing protocol launched in 2021, is poised for significant price appreciation according to market projections. The platform's zero-interest loans collateralized by ETH and its algorithmic stablecoin LUSD continue disrupting traditional lending models. By 2025, analysts anticipate LQTY could reach $0.87, with potential to surge beyond $9 by 2031.

The protocol's 110% minimum collateral ratio and non-custodial architecture provide security uncommon in DeFi. Upcoming innovations like BOLD's cross-chain liquidity incentives and the Liquity V2 upgrade signal strategic expansion. Partnerships with projects like Lagoon Finance further strengthen its ecosystem positioning.

While market volatility remains a challenge, Liquity's unique value proposition - combining interest-free loans with Ethereum's security - creates compelling fundamentals for long-term holders. The protocol's redemption fee mechanism and Stability Pool liquidation system offer institutional-grade risk management absent in competing platforms.

Aerodrome DEX Front-End Breach Highlights DNS Vulnerabilities in DeFi

Aerodrome, the leading decentralized exchange on Coinbase's Base network, suffered a front-end compromise on November 22. The breach involved DNS hijacking—a technique redirecting users to fraudulent websites—though smart contracts remained secure. Users were advised to access the platform through decentralized mirrors.

The attack extended beyond Aerodrome, affecting sister protocol Velodrome on Optimism. Both platforms traced the vulnerability to infrastructure provider My.box. This incident underscores persistent security challenges in DeFi, particularly around centralized domain dependencies.

Vitalik Buterin Flags Geolocation Risks on X as 'Easy to Fake'

Ethereum co-founder Vitalik Buterin has sounded alarms about X's new geolocation tagging feature, warning it creates systemic vulnerabilities for both security and privacy. The feature, which displays account registration countries, went live globally on November 22 via profile metadata.

Buterin predicts sophisticated bad actors will circumvent the system within six months, spoofing locations to appear as U.S. or U.K. accounts. While mass manipulation WOULD require coordination, he notes individual accounts could easily fabricate locations through rented passports, IP addresses, and phone numbers—a known tactic in crypto-related social engineering attacks.

The critique highlights a recurring tension in Web3: verification features designed to increase transparency often create attack vectors when implemented without decentralized safeguards. This comes as blockchain analytics firms report rising incidents of geofenced scams targeting crypto communities.