The ETH trend in the early morning left many people confused — starting from around 3030, it plummeted, dropping to a low of 2805 in just a few hours, with a fall of over 230 points causing significant losses for long positions.

Many people's first reaction is to blame Yearn Finance for the attack news: hackers exploited vulnerabilities to steal over ten million dollars and funneled 1000 ETH into Tornado Cash to launder it. But is this incident really that damaging?

Calmly think about it, the hacker incident is at most just a trigger. The real problem has actually been buried long ago.

Today, there are at least three clues about the plummet:

First, although Yearn was attacked involving an amount of 3 million USD, it is not fatal for the total ETH market, but the sentiment in the DeFi and staking sectors collapsed instantly. Panic selling occurred in LST-related assets, dragging down the overall ecosystem.

Secondly, the overall environment is not looking good. The large-scale liquidation wave on "1011" last month still has lingering effects, and the chain reaction of deleveraging has not stopped. In addition, the expectations for interest rate cuts by the Federal Reserve have cooled, inflation data remains stubborn, and economic indicators are weak, leading to general pressure on risk assets, and the crypto market cannot escape this.

Thirdly, if the rumors of the Bank of Japan potentially raising interest rates are confirmed, the tightening of global liquidity will accelerate, which is definitely not good news for highly volatile crypto assets.

However, the news is just a surface. What really determines how it goes tonight still depends on the signals given by the technical aspects.

From the hourly K-line perspective: the long bearish candle with increased volume in the morning directly broke through several short-term support levels, and the trend has clearly turned bearish. Now