24.04.202613:50 Forex Analysis & Reviews: DeFi United initiative halts outflows from Aave

Meanwhile, as Bitcoin and Ethereum trade inside narrow sideways channels, a number of major DeFi projects launched the DeFi United initiative to help Aave recover after the attack on KelpDAO, and that will allow the protocol to close its collateral shortfall.

Projects such as Lido, Golem, Mantle, and many others joined the effort. They have already raised 43 500 ETH. This coordinated action demonstrates the growing maturity and interdependence of the decentralized finance ecosystem. When one of the key protocols, Aave, faced serious liquidity problems due to external events, other significant players pooled resources to support it.

The move by Lido, Golem, Mantle, and others underscores the value of solidarity in the crypto industry, where the security and stability of a single participant can directly affect the entire system. After the initiative was announced, outflows from Aave stopped. Recall that in recent days funds worth tens of billions of dollars flowed out of the protocol.

The current situation shows that a timely and decisive community response can effectively stabilize conditions and restore investor confidence. Demonstrating a readiness to provide mutual support sends an important signal to all market participants and strengthens confidence in the resilience of the DeFi space as a whole.

Recall that hackers breached the KelpDAO protocol and withdrew 116 500 ETH, roughly $293 mln. Although this incident is serious, it also highlighted the importance of proactive security measures and rapid threat response. The DeFi United initiative is a direct reaction to the aftermath of that attack, demonstrating decentralized protocols' ability to self-regulate and to collectively resolve problems that arise during their development.

Trading recommendations:

Regarding Bitcoin's technical picture, buyers now target a return to $78,700, which opens a direct road to $80,900, and from there the market would be within reach of $83,100. The most distant target stands at the high near $85, 600, and a breach of that level would signal attempts to restore the bull market. In case of a Bitcoin decline, I expect buyers at $76,800. A return of the instrument below that area could quickly push BTC toward $75,000. The furthest downside target would be the $73,100 area.

Regarding Ethereum's technical picture, a clear consolidation above $2,371 opens a direct road to $2,459. The most distant target stands at the high near $2,575, and a breach of that level would indicate strengthening bullish sentiment and a return of buyer interest. In case of an Ether decline, I expect buyers at $2,295. A return of the instrument below that area could quickly push ETH toward $2,228. The furthest downside target would be the $2,162 area.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.