🔻 Short-term: A massive sell-off of $ETH occurred after the exploit → strong selling pressure and a price drop.
💧 Liquidity shock: Billions of dollars exited DeFi + unwinding of leverage positions → reduced demand for ETH.
⚠️ Market contagion: Liquidation of positions and additional pressure due to collateral issues (rsETH).
😨 Psychological impact: Loss of confidence in DeFi projects and restaking → investors shifting to $BTC and stablecoins.
📈 However, in the long run: Ethereum itself was not technically affected, and the crisis could lead to: ✔️ Improved security ✔️ A stronger return of liquidity ✔️ Increased trust in ETH as a core asset
🧠 In summary: The hit was in DeFi… but ETH was affected through liquidity and confidence, not due to any fault in itself.