Ethereum Security Alert: Hackers Exploit EIP-7702 in Pectra Upgrade to Drain Wallets
The ethereum Pectra upgrade, which introduced EIP-7702, has inadvertently become a new avenue for phishing attacks. On May 24, 2025, a wallet enabled with this functionality lost $150,000 after a user approved malicious token transfers. This incident highlights a growing trend in crypto scams, which siphoned $5.3 million from 7,565 wallets in April 2025 alone. Security analysts warn that hackers are quickly adapting to Ethereum’s smart-wallet innovations, posing significant risks to users. Despite these challenges, Ethereum’s price remains resilient at 2585.58000000 USDT, reflecting the market’s confidence in its long-term potential.
Ethereum News: How Hackers Are Exploiting EIP-7702 To Drain Wallets
Ethereum’s Pectra upgrade, featuring EIP-7702, has become a new vector for phishing attacks. On May 24, a wallet enabled with this functionality lost $150,000 after a user approved malicious token transfers. The incident underscores a broader trend: crypto scams siphoned $5.3 million from 7,565 wallets in April 2025 alone.
Security analysts note hackers are rapidly adapting to Ethereum’s smart-wallet innovations. EIP-7702 allows externally owned accounts to temporarily function like smart contracts during transactions—a feature now being weaponized. The exploit highlights the perpetual cat-and-mouse game between blockchain developers and malicious actors.
Besu’s BN254 Vulnerability: Subgroup Check Flaw Exposes Security Risks
A critical vulnerability in Besu’s Ethereum client involving improper subgroup checks on the BN254 elliptic curve has been patched, according to a report from the Ethereum Foundation. The flaw, present in version 25.2.2 of the execution client, risked undermining cryptographic security by potentially enabling manipulation of consensus mechanisms.
The BN254 curve—also known as alt_bn128—serves as a foundational cryptographic primitive within the Ethereum VIRTUAL Machine (EVM). Its role in securing operations makes this vulnerability particularly concerning for network integrity. The swift resolution underscores Ethereum’s commitment to proactive security measures amid growing institutional adoption.
Ethereum Faces Potential Selling Pressure Near $2,800 Resistance Level
Ethereum’s recent rally, which saw a 40% surge over the past month and a reclaim of the $2,500 level, may encounter significant resistance NEAR $2,800. On-chain data from Glassnode indicates a cluster of investor cost basis levels around this price point, suggesting that long-held positions could unwind as ETH approaches breakeven for many underwater holders.
The $2,800 zone represents a critical psychological threshold where accumulated sell orders may materialize. Market participants who bought during previous cycles now have their first exit opportunity in months, creating potential headwinds for continued upward momentum.
Is Ethereum Price Still Undervalued With Key Investor Level Looming At $2,800?
Ethereum’s market dynamics reveal a fascinating divergence between technical indicators and investor behavior. While the charts paint a bearish picture, on-chain data tells a different story—one of accumulation by long-term holders. The $2,800 level emerges as a critical psychological battleground, currently sitting 11% above ETH’s $2,493 trading price as of May 25.
Smart money appears to be voting with its wallet. Accumulating addresses—those that only receive ETH—have seen steady growth since January 2024. This accumulation pattern persists despite market volatility, suggesting institutional players are building positions at current levels. The $2,800 price point represents more than just technical resistance; it marks the average cost basis for many large investors, making its reclamation crucial for sustaining bullish momentum.
