Vulnerabilities in Ethereum smart contracts can significantly impact the price $ETH .

Main consequences:

1. Loss of investor trust – major hacks, like the attack on The DAO, lead to mass sell-offs and price drops.

2. Regulatory pressure – vulnerabilities may increase scrutiny from regulators, reducing Ethereum's appeal to institutional investors.

3. Decreased DeFi activity – if users fear exploits, trading volumes and liquidity in the Ethereum ecosystem decline.