Aave Restores WETH Collateral Settings Post Exploit
- Collateral Ratio Restoration: Aave has restored normal loan-to-value ratios for WETH across six V3 networks, with Ethereum Core's LTV returning to 80.5%, marking a significant step towards normalization for a key DeFi collateral asset and boosting market confidence.
- Crisis Response Measures: Following the rsETH exploit, Aave cut WETH's LTV to 0%, effectively preventing users from opening new debt positions and limiting market risk, demonstrating its commitment to liquidity protection during crises.
- Asset Recovery Progress: Of the 112,103 unbacked rsETH created during the attack, approximately 106,993 have been recovered through liquidations and coordinated recovery actions, indicating Aave's effective control over systemic risk and enabling the restoration of collateral settings.
- Market Signal: The restoration of WETH's borrowing utility reopens financing channels for DeFi users, enhancing capital efficiency, while signaling normalization to institutional users, although legal disputes and governance issues remain unresolved.
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Technical Analysis for AAVE
Technical Sentiment Analysis for Aave (AAVE). As of , Aave (AAVE) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 3 indicators are flashing buy, while 3 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 | 73.705 | 78.128 | 82.775 | 87.198 | 91.845 | 96.268 | 100.915 |
| Fibonacci | 78.128 | 81.592 | 83.733 | 87.198 | 90.662 | 92.803 | 96.268 |
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