{"id":175156,"date":"2020-11-03T18:00:20","date_gmt":"2020-11-03T18:00:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=175156"},"modified":"2020-11-03T11:33:47","modified_gmt":"2020-11-03T11:33:47","slug":"analyst-heres-why-ethereum-crashed-4-in-a-single-second-yesterday","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/analyst-heres-why-ethereum-crashed-4-in-a-single-second-yesterday\/","title":{"rendered":"Analyst: Here’s why Ethereum crashed 4% in a single second yesterday"},"content":{"rendered":"

Ethereum<\/a> has faced a strong correction over the past few days as Bitcoin has slipped lower.<\/p>\n

As of this article's writing, ETH trades for $370, around 7.5 percent below the $400 highs set just 36 hours ago. The cryptocurrency had trouble passing the key $400 resistance despite Bitcoin pushing to new year-to-date highs at $14,100 on the weekend.<\/p>\n

ETH's sell-off has been marked by a series of rapid sell-offs, indicating there may be a contingent of Ethereum investors that are bearish on the asset in the short term and thus are looking to liquidate their coins as fast as possible.<\/p>\n

Ethereum sell-off marked by rapid selling pressure from big investors<\/h2>\n

As noted<\/a> by the crypto-asset analyst “CL,” Ethereum's drop on Monday started with a rapid sell-off on Binance's futures market.<\/p>\n

Per his data, the coin fell by $15 \u2014 or approximately four percent \u2014 in the span of a single second. CL alleges that the drop was predicated on cascading “trigger orders” on Binance's futures, suggesting that there whales or large traders that didn't expect the coin to go much lower.<\/p>\n

While the move was initially bought up, with Ethereum recovering $13 out of the $15 drop, the cryptocurrency continued to move lower after that rapid sell-off.<\/p>\n

\"Image\"
Chart of ETH's price action on a one-second scale on Monday evening by crypto trader CL (@Cl207 on Twitter). Source: ETHUSD from Tradingview.com<\/a><\/figcaption><\/figure>\n

There was also spot market pressure that drove ETH lower.<\/p>\n

Crypto-asset analytics and data firm Coin Metrics<\/a> reported<\/a> shortly after Ethereum's correction that users had deposited 4,000 ETH into Binance twenty minutes before the downturn began. 4,000 ETH is worth around $1.5 million as of this article's writing.<\/p>\n

\n

?4,000 ETH was deposited into @binance<\/a> 20 minutes before the recent market downturn pic.twitter.com\/NKjydgSDSP<\/a><\/p>\n

— CoinMetrics.io (@coinmetrics) November 2, 2020<\/a><\/p><\/blockquote>\n