Ethereum (ETH) has plunged to a 13-month low of $1,540, driven by a bearish trend in the cryptocurrency market and a critical bug discovered in the Zcash blockchain. This vulnerability has raised concerns about potential contagion, leading to a significant contraction in Ethereum's Total Value Locked (TVL), which is now at its lowest since February 2024. The bearish sentiment is further compounded by the liquidation of over $1.28 billion in leveraged long positions within just five days. The demand for downside protection has surged, with the ETH options put-to-call ratio spiking to 3.7 times. Additionally, major decentralized applications on Ethereum have seen drastic reductions in TVL, contributing to a lack of confidence among investors. The recent hacks across the decentralized finance (DeFi) sector, totaling $630 million in April, have heightened fears regarding security vulnerabilities. Currently, only 30% of the ETH supply is profitable, a situation that has historically indicated potential for future price rallies.