Ethereum Key Takeaway:
ETH price drops below $1,300
The intensification of selling pressure, which led to the decline.
– Awesome price predictions for ETH
After losing about 20 percent of its value in the past 24 hours and hovering around $1,200 on Monday morning, many crypto investors and market watchers are preparing for a significant drop in Ether to the triple digits.
On decentralized exchange Uniswap, it happened late Sunday night, albeit temporarily, as ETH fell below the spot price, compared to other exchanges, to $950.
The sell-off saw the liquidation price of ETH drop from $1,200 to $875.
– Ash WSB (@ashwsbreal) June 13, 2022
Whale pranks over 65,000 ETH
A whale dumped over 65,000 ETH into the market against several “stablecoins,” including Tether (USDT), USDC and DAI, at around 3:00 AM UTC.
The massive selloff observed in the global market has a huge impact on the price of Ethereum. ETH traded at $1,160.20 on Tuesday, a 35 percent increase in the past seven days, according to statistics from Coingecko.
Market cap falls below $1,300 as the death spiral approaches the next support at $1,000. Analysts are currently considering whether the Ethereum market price will drop below $1,000 or see a bullish reversal.
Since the price was significantly lower compared to the spot price on other exchanges, which was hovering around $1,300 at the time, ETH sales were closely tracked on Crypto Twitter.
Ethereum Flash Crash Linked to Debt Bonus
Part of the evidence indicated that the whale sold its ETH holdings to settle debts of more than $73 million on DeFi’s lending platform Oasis.app. Throughout the sale, the liquidation price of ETH dropped from $1,200 to $875. However, it was a temporary crash for Uniswap, and the price recovered along with the rest of the market.
– DCF GOD (dcfgod) June 13, 2022
Why is the massive ETH leak of this whale important? Such fluctuations may harm the price of the token under unfavorable market conditions, especially during strong downtrends. Therefore, major position holders should be careful while selling their positions on exchanges and decentralized platforms.
ETH total market cap at $148 billion on the daily chart | Source: TradingView.com
ETH technical indicators, such as the RSI, are currently in the oversold territory. Although a slight rebound to the upside is possible, the bear market is only intensifying, indicating that Ethereum and all other cryptocurrencies are expected to continue to feel tight for some time to come.
Meanwhile, Ether’s rally to $950 was rapid, indicating that there is sufficient demand for the token at this level. Another research, conducted by veteran trader Peter Brandt, predicts that ETH will drop to $650 within the next few weeks.
Featured image from Blockworks, chart from TradingView.com