KelpDAO rsETH bridge $292 million exploit drives Aave down 19.15%

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Aave drops 19.15% today to $92.82

Highlights

Aave halted rsETH markets after a $292 million exploit of KelpDAO’s rsETH bridge caused unrecoverable bad debt via large WETH borrowings.
Aave will compensate affected WETH depositors through its Umbrella system and is investigating further protocol exposures following the attack.
AAVE trades under key moving averages with strong bearish momentum, likely consolidating between $88.00–$102.00 amid elevated downside risk.

KelpDAO exploit and debt fallout drive protocol risk reassessment

On April 18, 2026, Aave announced it had frozen rsETH markets on its V3 and V4 platforms following a $292 million exploit of KelpDAO’s rsETH bridge. The attacker used the drained tokens as collateral on Aave V3 to borrow large amounts of Wrapped Ether (WETH), resulting in unrecoverable bad debt and temporary withdrawal restrictions for depositors. Aave stated its smart contracts were not directly exploited and will use the Umbrella system’s automatic slashing to cover the deficit for affected WETH depositors. The protocol is now reviewing relevant borrowing transactions to assess further exposure.

Volatility and selling persist as oscillators show mixed momentum

Momentum signals are mixed: MACD and ADX on D1 are neutral, but daily RSI is in neutral territory at 50.50, while Stoch RSI gives a strong sell and CCI reads overbought on D1. Meanwhile, BBP’s overbought reading is not supported by the clear dominance of sellers in intraday timeframes, and AO remains neutral. Today’s session shows a sharp drop of $21.98 or 19.15%, opening with a gap down and trading near the session’s low of $92.87. This reflects high volatility and persistent downside pressure throughout the day, with no sign of a rebound so far. The conflicting signals from oscillators and momentum indicators highlight underlying indecision, while intraday price action confirms aggressive selling momentum.

Downside risk prevails as consolidation likely without breakout

Looking ahead, the expected 5-day price range is adjusted to $88.00 – $102.00, keeping within 10% of the current price to reflect typical volatility. The probability of a further price drop is very high (more than 80%), with any upside being less likely given all major weekly trend and momentum indicators point to continued weakness. The baseline scenario sees AAVE consolidating sideways within this corridor. A bullish scenario would require a break above the $101.96 immediate resistance, confirming renewed buying interest. A bearish move could accelerate if the price falls below the $92.00 – $90.00 area, exposing further downside risk.

Anton Kharitonov, expert at Traders Union, sees sustained seller dominance on all timeframes as Aave trades well below major moving averages. He notes that the fallout from the recent $292 million KelpDAO exploit has further weakened sentiment and introduced elevated uncertainty, with Aave moving to cover losses but still facing bad debt. Momentum and oscillator signals remain mixed, while aggressive intraday selling shows no sign of abating. "Unless AAVE reclaims $101.96, I am staying defensive and expect more downside risk in the coming days."

Earlier, analysts noted that Aave was constrained by persistent bearish momentum despite protocol upgrades and governance shifts. The latest rsETH exploit and resulting systemic stress now strengthen the case for heightened downside risk, making the $90.00 level critical for traders to monitor as a potential trigger for accelerated losses.

Source of Data: AAVE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.