Key Aspects of the ETH Unfreeze Proposal

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: May 07 2026

AAVE-2.371%

ARB-2.625%

GLM-0.469%

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Proposal Approval Status: A joint proposal to unfreeze approximately $71 million in Ether has garnered over 90.5% voting support, representing 173.9 million Arbitrum tokens, indicating strong community consensus for restoring rsETH backing.
DeFi United Recovery Plan: This proposal is part of the broader “DeFi United” recovery effort, with participants collectively pledging 43,000 ETH, valued at about $101 million, to mitigate the impact of the exploit and stabilize affected assets.
rsETH Shortfall Issue: Even if the proposal is approved, rsETH's backing still faces a shortfall of about 76,127 rsETH, currently valued near $174.5 million, highlighting the scale of the exploit and the limitations of recovery efforts.
New Arbitrum Proposal: The Arbitrum DAO is close to approving a proposal to allocate 6,000 ETH (approximately $14 million) from its treasury into a yield-generating portfolio, reflecting a trend among DAOs to actively manage treasury assets, with expected annual returns of around 288 ETH.

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Technical Analysis for AAVE

Technical Sentiment Analysis for Aave (AAVE). As of , Aave (AAVE) is exhibiting a Strong sell technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 1 indicators are flashing buy, while 5 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	53.909	59.559	66.689	72.339	79.469	85.119	92.249
Fibonacci	59.559	64.441	67.457	72.339	77.221	80.237	85.119

About AAVE

Aave is a decentralized finance protocol that allows people to lend and borrow crypto.Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.Aave (which means “ghost” in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to Aave happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)AAVE provides holders with discounted fees on the platform, and it also serves as a governance token — giving owners a say in the future development of the protocol.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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