Aave Restores WETH Borrowing Functionality
- Borrowing Functionality Restored: Aave has reinstated WETH borrowing across Ethereum and L2 networks following the April rsETH incident, with loan-to-value ratios (LTV) returning to pre-exploit levels, indicating the protocol's recovery capability and gradual market confidence restoration.
- Collateral Settings Adjusted: After the attack, Aave temporarily reduced WETH's LTV to 0%, but it has now been restored to 80.5% on Ethereum Core and 84% on Ethereum Prime, which is expected to attract users back to borrowing activities.
- Asset Recovery Progress: Approximately 112,103 unbacked rsETH were minted during the exploit, with Aave recovering 89,567 rsETH through liquidation efforts, demonstrating the protocol's asset recovery capability post-crisis, although around 5,200 rsETH remain unresolved.
- Total Value Locked Decline: Despite the restoration of borrowing functions, Aave's total value locked (TVL) has dropped from $23.5 billion in March to $14.8 billion this week, reflecting ongoing market confidence issues, while Kelp DAO plans to sunset rsETH bridging after June 15.
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Technical Analysis for AAVE
Technical Sentiment Analysis for Aave (AAVE). As of , Aave (AAVE) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 2 indicators are flashing buy, while 4 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for AAVE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, AAVE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Aave (AAVE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 42.585 | 51.338 | 60.485 | 69.238 | 78.385 | 87.138 | 96.285 |
| Fibonacci | 51.338 | 58.175 | 62.4 | 69.238 | 76.075 | 80.3 | 87.138 |
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