The recent price movements of Ethereum have been truly shocking. The price suddenly plummeted from near $3000 to around $2872, causing chaos in the contract market.

The situation came as a complete surprise. At 7:37 AM, ETH had just fallen below the $3000 mark, with the price around $2997, and many people were still observing. Unexpectedly, just 3 minutes later, there was a major incident with Yearn Finance—their yETH product was hacked. The attacker discovered a critical vulnerability that allowed for unlimited minting of yETH tokens, directly draining the funds from the pool; about 1000 ETH was transferred away in the blink of an eye, and ultimately all went into the Tornado Cash mixing protocol.

As soon as the news broke, the market panicked instantly. By 8 o'clock sharp, within just 9 minutes, ETH plummeted from $2999 to $2920, a drop of 2.64%. The speed was too fast; high-leverage positions simply couldn't withstand it, leading to wave after wave of liquidation.

At 8:19, the key position of 2900 USD couldn't hold, and the price updated to 2898 USD. The selling pressure is visibly increasing. By the time of the 8:33 statistics, the total liquidation amount in the market within an hour has already exceeded 100 million USD, with ETH alone contributing around 3.26 million.

The recent crash is actually the result of two overlapping forces: on one side is the chain reaction of leveraged positions, and on the other side is the impact of security incidents on ecosystem confidence. Liquidity was already insufficient, and when faced with panic selling, the decline becomes particularly severe.