Ethereum Key Takeaways
– ETH prices have plummeted below $1300
– Selling pressure intensifies, which triggers the decline.
– Dire price forecasts for ETH
Many crypto investors are expecting a huge Ether drop back to the triple digits, after the cryptocurrency lost around 20% in the last 24 hours. The price hovered at $1,200 Monday morning.
On the decentralized exchange Uniswap however it happened late Sunday night. However, this was only temporarily as ETH retreated to $950 below the spot price.
The duration of the sell-off saw ETH’s liquidation price dropping from $1,200 to $875.
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$ETHUniswap – $945 pic.twitter.com/XybAcnkMCH
— Ash WSB (@ashwsbreal) June 13, 2022
Whale Dumps Over 65KETH
A whale unloaded over 65,000 ETH into the market for numerous “stablecoins,” including Tether (USDT), USD Coin (USDC), and DAI, at approximately 3:00 am UTC.
The ETH market price is affected significantly by the huge sell-off that has occurred on the international markets. Tuesday’s trade price for ETH is $1,160.20, up 35 percent in the last seven days, according to statistics from Coingecko.
Market value plunges below $1300, as death spiral closes to $1000. Analysts are currently pondering if Ethereum’s market price would drop below $1,000 or see a bullish reversal.
The price of ETH was significantly lower than the spot rate at other exchanges which was hovering around $1300. This led to Crypto Twitter closely following the overselling.
Ethereum Flash Crash Tied to Debt Paymentoff
A piece of evidence indicated that the whale sold its ETH holdings to settle over $73 million in debt at DeFi’s Oasis.app lending platform. ETH’s liquidation value dropped to $875 from $1,200 during the saleoff. Uniswap suffered a temporary flash crash that saw the price drop to $875. However, the price rebounded with the rest.
I believe so
— DCF GOD (@dcfgod) June 13, 2022
Why this whale’s massive ETH spill is significant? These swings could be detrimental to token prices during unfavorable market circumstances, especially when there are strong downtrends. Major holders of positions should be cautious when selling them on platforms and exchanges.
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ETH market capital at $148 Billion according to the Daily Chart | Source: TradingView.com
ETH’s technical indicators, such as the RSI, are currently well into oversold territory. Despite the possibility of a slight rebound to the upside, the bear market is only intensifying, indicating that Ethereum and all other cryptocurrencies are expected to continue feeling the pinch for some time.
Meanwhile, Ether’s rise to $950 was quick, indicating that there was sufficient demand for the tokens at that level. Another research by Peter Brandt (a veteran trader) predicted that ETH will drop to $650 in the coming weeks.
Featured Image from Blockworks. Chart from TradingView.com