The Binance hot wallet exploit has put Aave in an awkward spot. Around 9 pm UTC on 29 October, one Ethereum hot wallet sent 63 ERC-20 tokens and 167,464 ETH in a single transaction. A second Binance hot wallet on Ethereum sent another 28,006 ETH to the same exploiter address. Funds also came from Arbitrum, Optimism, and Avalanche. Aave responded by freezing markets across all networks. That stopped everyone, including the exploiter, from opening new supply or borrow positions.
Market reaction and liquidations
The wider market took the news badly. Bitcoin fell 3.46% and Ethereum dropped 3.93% in the past 24 hours. Aave fell harder, down 5.67%. Crypto liquidations crossed $1.50 billion, with most of that coming from long positions. Perhaps the market is still pricing in the risk of more fallout. Or maybe traders are just cutting exposure while the details settle.
Aave price structure after the rally
From June to September, Aave rallied 214.2%, moving from $60 to $188. Since that local high, the token has retraced 32.9% to $125.8. The weekly trend was bearish before this drop, and the current move does not fix that. There is some hope for bulls that the retracement could reach $213 to $240, but only if the weekly session does not close below $113.4. That level matters.
Why $113 support is the key line
The $140 support zone has already been breached. Daily technical indicators were firmly bearish. At the same time, the swing structure was just about bullish. The fair value gap around the 78.6% Fibonacci retracement at $129 was breached, and the bullish order block around $115 is being tested. If market-wide selling continues, Aave’s price structure could take a bearish shift. Swing traders may wait for a sign of demand, maybe heavy buying or a move back above $120, before going long. The long-term trend is not in their favor, so caution makes sense. The $113 area is the line to watch. A weekly close below it would weaken the bull case.
