Why Is Cetus Protocol (CETUS) Price Pumping?

3 days ago 9

TLDR:

CETUS has surged by almost 30% after announcing a full user reimbursement backed by the Sui Foundation.
The $223M hack on May 22 triggered a rapid response, pausing $162M in compromised funds.
The SUI Foundation seeks a community vote to unlock funds for recovery and reimbursement.
Technicals show bullish momentum, with key resistance near $0.2455 and support at $0.1302.

Cetus Protocol (CETUS) has staged a recovery today, surging close to 30% in the past 24 hours after a devastating hack earlier this week.

The token currently trades at $0.1664 with a substantial trading volume of $197 million. Despite a weekly decline of 16.84%, the CETUS price has rebounded strongly following positive developments from the protocol team.

The recovery comes after Cetus announced a comprehensive plan to reimburse affected users fully. This turnaround highlights the nature of DeFi tokens following security incidents.

The $223 Million Hack That Shook Cetus Protocol

The CETUS price crash began on May 22nd when hackers exploited the protocol and stole approximately $223 million.

Cetus Protocol immediately announced the breach through their official X account, confirming the massive theft. The team quickly locked their contracts to prevent further damage and managed to pause $162 million of the compromised funds.

🚨ANNOUNCEMENT

As of earlier today, we have confirmed that an attacker has stolen approximately $223M from Cetus Protocol. We have took immediate action to lock our contract preventing further theft of funds.

$162M of the compromised funds have been successfully paused. We are…

— Cetus🐳 (@CetusProtocol) May 22, 2025

“We have took immediate action to lock our contract preventing further theft of funds,” the Cetus team stated in their initial announcement. The protocol worked with the Sui Foundation and other ecosystem partners to trace the stolen assets. They also engaged professional anti-cybercrime organizations and law enforcement agencies for support.

Yesterday’s announcement transformed market sentiment around Cetus Protocol entirely.

The team revealed they could achieve 100% recovery of stolen funds through a combination of treasury assets and a critical loan from the Sui Foundation. This recovery plan depends on an upcoming community vote to unlock the paused funds.

📢 New Progress Update – A Path Forward Together!

Since the incident, we have reflected deeply on the incident and its impact on our users, partners, and the broader ecosystem. We are deeply sorry and take this responsibility seriously. Today, we want to share a meaningful step…

— Cetus🐳 (@CetusProtocol) May 27, 2025

“Using our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain if the locked funds are recovered through the upcoming community vote,” Cetus Protocol announced.

The Sui Foundation’s loan makes complete reimbursement possible for all affected users. The protocol has asked the Sui community to support the upcoming vote for fund recovery.

Technical Analysis Shows Bullish Momentum

CETUS price action today shows strong bullish momentum, with the token breaking above key resistance levels.

The daily trading range spans from $0.1302 to $0.1697, while the weekly range extends from $0.1219 to $0.2455. Immediate support sits at $0.1302, with resistance at $0.1697.

If the current momentum continues, the token could surge past the weekly high of $0.2455 and target higher levels.

However, traders should watch the $0.1219 support level closely, as a break below could signal a potential reversal. The recovery’s sustainability depends on the community vote outcome and the successful fund recovery.