Ethereum just hit its lowest level in 13 months. A vulnerability in Zcash and Bitcoin's slide below $60,000 triggered a cascade that pushed ETH under $1,600. The altcoin market, already fragile, took a direct hit with over $300 million in liquidations across derivatives in the last 24 hours, according to Coinglass. Panic spread quickly, with spot exchange trading volume surging 40% in the same period, per CoinGecko. This move represents a 35% correction from the March 2026 highs near $2,500.
The Signal
ETH price crashed below $1,600 as a vulnerability in Zcash emerged and Bitcoin sold off below $60,000 for the first time in months. The double whammy caught traders off guard, with liquidations piling up across derivatives exchanges. The Zcash bug news rattled the privacy coin sector, but the contagion quickly spread to Ethereum. Investors interpreted the event as a sign of broader systemic risk, especially with Bitcoin breaking a key psychological level. The Crypto Fear & Greed Index dropped to 22, its lowest since the FTX collapse in 2022, indicating "extreme fear."
ETH dropping below $1,600 marks the lowest level since May 2025, with key support at $1,400. This level is psychologically important as it represents a historical accumulation zone. In the previous cycle, ETH bounced from $1,400 multiple times, generating gains of over 50% in the following months. However, the current macro context is different: persistent inflation and high interest rates could limit risk appetite. Additionally, futures liquidation volume reached $450 million in the last 24 hours, with ETH accounting for 40% of that total, according to Bybit data.
