Ether slides to 13-month low after Zcash bug; Bitcoin under $60K

Ether dropped to its lowest level in 13 months after reports of a bug in Zcash’s code triggered selling across cryptocurrency markets. Bitcoin fell below $60,000 during the same session as traders reduced exposure to digital assets.

Reports of the Zcash bug emerged early in the trading day and spread through trading desks and social channels, prompting a broad retreat in spot and derivative markets. The reported flaw raised concerns about protocol security and software vulnerabilities, which led market participants to move into lower-risk positions.

Traders sold holdings in both spot and futures venues. Long positions in Ether were cut, short interest rose on some derivative platforms, and funding rates turned negative. Exchange order books showed increased sell-side volume during the largest part of the decline, and volatility measures for major tokens increased as liquidity providers widened spreads.

Technical analysts identified $1,400 as a potential next support level for Ether, citing prior lows and indicators such as moving averages and Fibonacci retracement levels. If Ether reaches that level, it would move into previously tested support zones that could concentrate buying and sell-side liquidity. Extended trading below $1,400 would place Ether beneath those earlier support bands.

On-chain metrics showed a reduction in token transfers to decentralized finance protocols, while stablecoin flows to exchanges increased, indicating higher available buying power that had not been deployed. Liquidity in many smaller tokens thinned as traders focused on core assets, and derivative markets recorded a rise in liquidations during the sharpest portion of the sell-off.

Industry participants noted that bugs in one project have affected sentiment across other tokens in past incidents, reflecting shared developer communities and interdependence among projects. Developers and auditors for Zcash and related teams were reported to be investigating the issue and preparing disclosures; markets awaited details on the severity and scope of the bug.

Ether has faced sector-specific and macroeconomic drivers this year, including adjustments to network economics and protocol updates, alongside investor flows into cryptocurrency products. Bitcoin’s move below $60,000 is monitored by institutional and retail participants as a psychological and technical threshold. Traders and analysts cited forthcoming developer statements, on-chain metrics and macro headlines as indicators to watch for signs of contagion or further price moves.