Karla Barker 
Binance hot wallet exploit reaches Aave
Around 9 pm UTC on 29 October, a Binance hot wallet on Ethereum moved 63 ERC-20 tokens and 167,464 ETH in one 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 its markets across all networks. That step stopped everyone, including the exploiter, from opening new supply or borrow positions.
The wider market turned lower. Bitcoin fell 3.46% and Ethereum dropped 3.93% in the past 24 hours, while Aave lost 5.67%. Crypto liquidations topped $1.50 billion, and most of that was long positions. The reaction is not shocking, but it does show how quickly a security event can hit sentiment across DeFi.
Price structure sits on a key line
From June to September, AAVE rallied 214.2%, from $60 to $188. Since that local high, the token has retraced 32.9% to $125.8. The weekly trend was bearish. Still, there is some hope for bulls that the current pullback could turn toward $213 to $240, as long as the weekly session does not close below $113.4.
The $140 support zone has been breached. Daily technical indicators were firmly bearish, while the swing structure was just about bullish. The fair value gap around the 78.6% Fibonacci retracement at $129 was also breached. The bullish order block near $115 is now being tested. If market-wide selling continues, Aave could take a bearish shift in its price structure.
What swing traders can do
Swing traders looking to buy can use the daily chart, but they should remember the long-term trend is not in their favor. Waiting for demand makes more sense. That could come as heavy buying or a move back above $120. Perhaps the $113 support line is the main level to watch now. A weekly close below it would weaken the case for a bounce, while holding above it keeps the larger upside scenario alive for now.