Ethereum Price Drops to 13-Month Low as Zcash Bug and Bitcoin Sell-Off Shake Market

Ethereum experienced a sharp decline on June 6, falling to a 13-month low of $1,540 as the broader cryptocurrency market came under heavy selling pressure. The drop followed Bitcoin’s slide below the $60,000 level, a move that weakened sentiment across digital assets and triggered fresh concerns about further downside for Ether.

Market data showed a strong bearish shift in Ethereum derivatives. The annualized funding rate for ETH perpetual futures turned negative, signaling growing demand for short positions. At the same time, more than $1.28 billion in leveraged long positions were liquidated over the past five days, adding to downward pressure on price.

Zcash Vulnerability Sparks Fear Across Crypto Markets

Investor concerns intensified after a critical vulnerability was discovered in Zcash’s largest zero knowledge privacy pool. The flaw, identified on May 29 using Anthropic’s Opus 4.8 artificial intelligence model, could have allowed unlimited ZEC token minting.

Because the bug reportedly existed since 2022 without detection, traders began questioning the security of other blockchain networks and smart contracts. The discovery fueled fears of wider risks across the decentralized finance sector.

Ethereum TVL and DeFi Activity Continue to Decline

Ethereum’s total value locked dropped to its lowest level since February 2024. Major decentralized applications recorded steep declines, including Spark, Ether.fi, EigenCloud and KernelDAO.

The market has also been affected by recent security incidents. Crypto related hacks reached $630 million in April, with KelpDAO and Drift Protocol accounting for most of the losses.

Could ETH Fall to $1,400?

With more than $500 million in leveraged ETH positions liquidated in just 48 hours and options traders increasing demand for downside protection, market sentiment remains weak. While some historical indicators suggest Ethereum may be approaching oversold levels, traders remain cautious as security concerns and declining network activity continue to weigh on price.