Demand for crypto assets is currently very high, despite an earlier slump of BTC and ETH following Friday's statements by Jerome Powell. At the moment of writing, Ethereum gained more than 10.0% over the past 24 hours, while Bitcoin advanced by 3.5%. Currently, Ethereum is outperforming Bitcoin, which broke though its key support level on Friday. ETH touched its monthly lows early on Monday and quickly reversed upwards afterwards.
Yesterday, the Federal Bureau of Investigations has released an alert to decentralized finance (DeFi) platforms, warning them to improve their security. The FBI also warned users of DeFi platforms about the services' vulnerabilities.
The FBI's alert came following this year's several high-profile attacks on DeFi platforms which do not use third parties to carry out financial transactions on the blockchain. Earlier this year, hackers stole $650 million from the Ronin bridge by taking advantage of an exploit. Since then, attempts at stealing funds from DeFi protocols have only intensified.
Out of $1.3 billion in cryptocurrencies stolen in January-March 2022, almost 97% was stolen from DeFi platforms, FBI reported citing Chainalysis. According to FBI representatives, attackers usually take advantage of a flash loan vulnerability, exploit signature verification or manipulate trading pairs that are used to convert tokens between different blockchains. The agency asked investors to exercise caution when choosing a DeFi platform and use only use platforms that have conducted audits or been around for some time.
The FBI stated that DeFi platforms should start instituting real-time analysis, monitoring and testing, as well as have a plan for tackling exploits and alerting investors. Earlier this year, the FBI and LinkedIn joined hands to fight fraudulent actors using the professional network platform to lure investors into cryptocurrency schemes.
On the technical side, Bitcoin bulls managed to regain $19,966 yesterday and are now trying to push the cryptocurrency up towards $20,788. BTC is likely to rise further amid the ongoing bull market which followed the downward correction, as market players take advantages of Bitcoin's lower prices. The closest support at $20,800 is the key level for bulls at the moment. If BTC breaks above this level, it coud then surge to $21,540. However, Bitcoin must break through the resistance at $22,180 and $22,670 to extend its upside. If BTC falls under renewed pressure and fails to hold on to $20,007, it could then drop back toward $19,100, which open the way towards $18,620.
Ethereum has strongly surged recently, with the resistance at $1,605 being the closest target for bulls at the moment. A breakout above $1,605 would lead to bullish sentiment in the market, opening the way towards $1,667 and $1,743. If ETH comes under renewed pressure, bulls would have to hold on to $1,530 to keep initiative in the market. A breakout below this level would send Ethereum down towards $1,476 and $1,418.