Italy's central bank has raised concerns about the potential systemic risks posed by significant Ethereum price volatility. According to recent statements, a sharp decline in ETH valuation could trigger cascading disruptions across the broader Ethereum ecosystem, impacting both DeFi protocols and network stability.

The warning reflects growing institutional attention to cryptocurrency market dynamics and their interconnected effects. As major financial authorities increasingly scrutinize digital asset markets, the relationship between price movements and network infrastructure becomes a critical focal point for regulators worldwide.

This development underscores how traditional finance institutions are monitoring crypto market conditions, particularly regarding assets with substantial ecosystem dependencies. The concern highlights the importance of price stability for maintaining healthy network operations and user confidence in blockchain-based systems.