Ethereum Faces Security Challenges Amid Pectra Upgrade Exploitation

The Ethereum network is currently grappling with significant security vulnerabilities following the exploitation of its recent Pectra upgrade, specifically the EIP-7702 feature. Malicious actors have reportedly Leveraged this upgrade to automate mass wallet drainings, posing a severe threat to unsuspecting users. According to analysts at Wintermute, a prominent crypto trading firm, attackers have utilized 97% of EIP-7702 wallet delegations to deploy contracts designed to siphon funds. The EIP-7702 upgrade temporarily allows externally owned accounts to function as smart contract wallets, enabling advanced features like transaction batching and wallet recovery. However, this very functionality has been weaponized by crypto theft gangs, leading to widespread concerns about the security of Ethereum-based assets. Despite these challenges, Ethereum’s price remains resilient at $2,497 USDT, reflecting the market’s confidence in its long-term potential. This incident underscores the need for enhanced security measures and vigilant monitoring as the Ethereum ecosystem continues to evolve.

Ethereum Pectra Upgrade Exploited by Crypto Theft Gangs

Malicious actors are exploiting Ethereum’s EIP-7702 upgrade to automate mass wallet drainings, according to analysts at crypto trading firm Wintermute. Attackers have used 97% of EIP-7702 wallet delegations to deploy contracts designed to siphon funds from unsuspecting users.

The upgrade temporarily allows externally owned accounts to operate as smart contract wallets, enabling features like transaction batching and wallet recovery. While intended to enhance usability, hackers are leveraging these capabilities to authorize contracts that automatically forward ETH to attacker-controlled addresses.

Wintermute’s analysis reveals over 105,000 of nearly 190,000 examined delegated contracts were linked to illicit activity. "No doubt attackers are one of the early adopters of new capabilities," said Rahul Rumalla, Chief Product Officer at Safe, noting that 7702 was never meant to be a silver bullet despite its legitimate use cases.

What To Expect From Ethereum in June

Ethereum’s price action has tightened in recent weeks, consolidating within a narrow range as the broader market cools. Despite this, analysts remain bullish on ETH’s prospects for June, citing institutional ETF inflows and network stability as key drivers.

Temujin Louie, CEO of Wanchain, describes ETH’s outlook as "increasingly bullish," pointing to consistent ETF investments and the successful Pectra upgrade. "Investor confidence in ethereum as a network and ETH as an asset is restoring," Louie noted.

Dominick John of Kronos Research highlights the impact of ETF demand on market dynamics. "ETH ETFs are boosting liquidity while tempering volatility," he said. Stablecoin strength and on-chain signals further support sustained interest.

Ethereum Faces Familiar $2,800 Price Barrier – Bulls Ready For Breakout?

Ether prices dipped to $2,550 amid broader crypto market volatility tied to US-China trade tensions, before staging a minor rebound. Analyst Daan Crypto highlights the $2,800 level as a critical resistance zone—historically dictating ETH’s directional momentum.

A decisive breakout above $2,800 could reignite bullish momentum, echoing the 2024 rally to $4,000. Conversely, failure to breach this barrier may prolong consolidation. The altcoin has already faced rejection at this level once during April’s recovery, underscoring persistent selling pressure.

Ethereum Holds Strong Above $2,500 Amid Market Pullback

Ethereum demonstrates resilience as it maintains its position above the $2,500 threshold, despite a 10% retracement from recent highs. The asset remains up nearly 50% this month, signaling sustained bullish momentum. Analysts suggest this consolidation phase may precede another upward surge.

Market observers highlight Ethereum’s relative strength compared to broader crypto market volatility. A decisive break above $2,700 could catalyze altcoin momentum across exchanges. "Ethereum’s ability to hold gains during market resets often precedes aggressive moves," noted analyst Ted Pillows.

The second-largest cryptocurrency by market cap continues to outperform during periods of global uncertainty. Its technical structure remains intact, with traders watching for potential breakout signals that could ignite the next altseason.