Ethereum (ETH) Price Shoots 5% Despite A Network Attack and Chain Split

28 Aug, 2021

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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The Ethereum (ETH) price is up 5% in the last 24 hours while regaining the lost grounds. As of press time, ETH is trading at a price of $3,257 and a market cap of $382 billion. This price surge came despite the attack happening on the Ethereum blockchain.

The Ethereum blockchain network was under attack on Friday, August 27, as the hacker exploited some bug in the older versions of the Geth clients. The bug specifically impacted some of the older versions of Geth clients aka v1.10.7.

However, the Ethereum developers already released version 1.10.8 earlier in the week on August 24. The attack resulted in a chain split on the Ethereum mainnet affecting nearly 50% of older Ethereum clients. Ethereum developer Marius VanDerWijden update about the event. He said:

It seems that someone found the bug we fixed in @go_ethereum v1.10.8 and exploited it causing all geth nodes with earlier versions to split from the network. If you are running v1.10.7 or earlier please update!!!

Tim Beiko from the Ethereum CoreDevs team also updated about it. He specifically names three pools mining the wrong version mining on the wrong Geth version. This included Binance, Flexpool, and BTC.com. He further revealed which pools have already upgraded to it.

It seems that someone found the bug we fixed in @go_ethereum v1.10.8 and exploited it causing all geth nodes with earlier versions to split from the network. If you are running v1.10.7 or earlier please update!!!

— MariusVanDerWijden (@vdWijden) August 27, 2021

However, the good thing is that more or less everything appears to be safe at this stage. Cause of this, the ETH investors don’t seem to be in a panic at this point.

Ethereum On-Chain Metrics

The Ethereum on-chain metrics resemble fundamental strength for the price rally to continue further. On Friday, August 27, CryptoQuant reported a total of 60K ETH netflow at the exchanges.

"-60k ETH netflow from spot exchanges" by @satoshiheist

Read more in Quicktake👉https://t.co/i5K6gI8kaU pic.twitter.com/EZ3z90TtOY

— CryptoQuant.com (@cryptoquant_com) August 27, 2021

The netflow is an indicator showing the difference between the exchange inflows and the outflows. It is clear that the outflows have been higher than the inflows. Meaning the ETH supply at the exchanges is negative which is bullish.

But this spike in the transfer demand has also resulted in a sharp rise in the gas price pushing it to a three-month high.

#Ethereum has quickly rebounded to Tuesday levels, eclipsing $3,276 half an hour ago. With $ETH transfer demand increasing, the amount of average gas used (in gwei) has risen sharply to 132.53 per transfer. This is a 3-month high in average gas fees. https://t.co/GARGjPwpWz pic.twitter.com/9nl0xX7A76

— Santiment (@santimentfeed) August 27, 2021

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.