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AWS Outage Affects Ethereum and More: How Dependent is Crypto on Amazon?
An outage at Amazon Web Services (AWS) on Monday morning caused significant disruptions across the internet, impacting the crypto industry as well. Several blockchain services, including the crucial Ethereum infrastructure provider Infura, were temporarily inaccessible. According to Infura's official status report, there were outages at various JSON-RPC endpoints affecting networks such as Ethereum Mainnet, Polygon, Arbitrum, Optimism, Linea, Base, and Scroll.
Many users were unable to connect to the blockchain, with wallets like MetaMask and applications like Uniswap displaying error messages. This situation echoes a similar incident experienced by crypto exchanges like Binance in April of this year, leading to loud criticism on social media platforms.
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"AWS is down and then the internet stops working. But the blockchain, it never goes ... wait a minute. Scratch that. This sector is a joke. Everyone preaching decentralization and censorship resistance but in reality ... it's all 100% reliant on the cloud."
The promise of decentralization is at the forefront of the blockchain movement, yet the current reliance on centralized services raises questions about its true value. The dependency on cloud services creates several risks, including a single point of failure when a provider like AWS goes down, crippling large parts of the Web3 ecosystem. Additionally, there are censorship and control risks, as cloud providers could theoretically filter requests or block access.
According to Messari, around 70% of all Ethereum nodes were operated on centralized hosting services in 2022, with more than half running on AWS. However, data from Ethernodes indicates that this dependency has decreased to 50%. There are emerging solutions in the space that utilize decentralized RPC networks, such as Ankr or Lava, which distribute requests to independent nodes, potentially reducing reliance on cloud providers in the long run.
The recent AWS outage highlights that "decentralization" in the crypto sector often exists only in theory. As long as centralized infrastructures like AWS are heavily utilized, the ecosystem remains vulnerable to external disruptions.
Key Takeaways:
- AWS outage caused significant disruptions in the crypto industry.
- Many blockchain services, including Infura, were temporarily inaccessible.
- Dependency on centralized services raises questions about true decentralization.
Ethereum Under Pressure at $4,100 – VanEck Plans Staking ETF on Lido-Based ETH
Ethereum (ETH) is facing pressure around the $4,100 mark, despite an application from asset manager VanEck to the SEC for the introduction of a Lido Staked ETH Exchange-Traded Fund (ETF). The proposed VanEck Lido Staked Ethereum ETF aims to provide investors with access to the price performance of staked Ethereum and associated staking yields.
If approved, the ETF would offer institutional investors a compliant and tax-efficient way to engage in Ethereum staking within a regulated investment framework. This application follows improved regulatory conditions for cryptocurrencies in the U.S. under President Trump and the new SEC leadership, which has clarified that certain staking activities do not qualify as securities transactions.
In the past 24 hours, Ethereum futures saw liquidations totaling $144.3 million, with $62.6 million from long positions and $81.7 million from short positions. After recovering from a support level at $3,815 and breaking above a downward trend line from October 7, ETH is now testing resistance at the critical $4,100 mark.
Above $4,100, further hurdles await at $4,270 and $4,500, while a drop below $3,815 could see ETH fall to around $3,500. The Relative Strength Index (RSI) and MACD histogram indicate ongoing bearish dominance but show slight signs of stabilization.
Key Takeaways:
- VanEck has applied for a Lido Staked ETH ETF to provide institutional access to staked Ethereum.
- Ethereum is currently under pressure around the $4,100 mark, with significant liquidations in futures.
- Technical indicators suggest potential resistance and support levels for ETH.
Ethereum Shows Strength After Crypto Crash: Is Market Recovery Imminent?
The sentiment in the crypto market is extremely bearish following the recent flash crash, with many investors fearing the onset of a prolonged bear market. However, indicators suggest that Ethereum may be poised for a recovery. The recent rally in gold prices and increased interest from institutional investors could lead to capital shifts into the crypto market.
Notably, BitMine has utilized the recent price drop to invest over $1 billion in Ethereum, signaling confidence in the asset's potential. Ethereum's price remains significantly above the 200 EMA, indicating relative strength compared to other altcoins. Additionally, negative funding rates in the futures market confirm the bearish sentiment among investors, putting pressure on short sellers.
Key Takeaways:
- Ethereum shows potential for recovery despite bearish market sentiment.
- Institutional investors are taking advantage of lower prices to invest in ETH.
- Technical indicators suggest Ethereum's relative strength compared to other altcoins.
Ethereum Classic: Investment Losses Over Three Years
Investors who purchased Ethereum Classic (ETC) three years ago at a price of $22.33 would have seen their investment significantly decrease. A $10,000 investment would have resulted in 447.89 ETC, which would be worth approximately $7,056.03 at the current price of $15.75, reflecting a loss of 29.44% from the original investment.
Ethereum Classic reached its 52-week low of $14.04 on April 8, 2025, while its 52-week high was recorded at $38.51 on December 6, 2024.
Key Takeaways:
- Investors in Ethereum Classic have faced significant losses over the past three years.
- The current value of ETC reflects a substantial decrease from its historical price.
Trade Talks Between the U.S. and China Lead to Increases in Bitcoin, Ethereum, and XRP
A new round of trade negotiations between the U.S. and China has successfully concluded, resulting in a phased agreement that marks a significant easing of tensions between the two largest economies in trade, technology, and investment. Following the announcement, the prices of Bitcoin, Ethereum, and XRP saw an increase.
The improvement in U.S.-China trade relations has bolstered global economic confidence, leading to renewed investments in high-growth digital assets. Additionally, SolMining has introduced a Bitcoin contract allowing users to deposit supported cryptocurrencies and access contracts without needing to purchase mining equipment.
Key Takeaways:
- Successful trade talks between the U.S. and China have positively impacted crypto prices.
- Investors are regaining confidence in digital assets following the easing of trade tensions.
Sources:
- AWS-Ausfall trifft Ethereum und Co.: Wie abhängig ist Krypto von Amazon?
- Ethereum unter Druck bei 4.100 US-Dollar – VanEck plant Staking-ETF auf Lido-basiertes ETH
- Ethereum zeigt Stärke nach Krypto-Crash: Erholt sich der Markt bald?
- Ethereum Classic: So viel Verlust hätte eine Investition von vor 3 Jahren eingebracht
- Handelsgespräche zwischen den USA und China führen zu einem Anstieg von Bitcoin, Ethereum und XRP
- Ethereum-Foundation unter Druck: Insider rechnet ab
