Ethereum price flash crashes to $950 on Uniswap as whale dumps 93K ETH

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Ethereum price flash crashes to $950 on Uniswap as whale dumps 93K ETH
Blockonomics


Ethereum’s native token, ether (ETH), fell to $950 on Uniswap, a decentralized cryptocurrency exchange, on June 13 this year, about 20 percent below spot rates on other exchanges.

ETH/USD hourly price chart. Source: Uniswap

Over $130 Million in ETH Sold in Six Hours

The event happened around 3:00 a.m. UTC after a whale dumped 65,000 ETH for a variety of “stablecoins,” including USD Coin (USDC), Tether (USDT), and Dai (DAI).

Evidence points to whales selling their ETH holdings to pay off debts worth nearly $73 million on DeFi lending platform Oasis.app. During the sell-off, ETH’s liquidation price fell from $1,200 to $875.

Borrowers in Oasis continued to sell like crazy — selling another nearly 28,000 ETH five hours after the first — to pay off another $32 million in debt. This time, the liquidation price rose from $892 to $1,200, as shown in the chart below.

Phemex
Screenshot of the anonymous borrower dashboard. Source: Oasis.app

As a result, the whale dumped around 93,000 ETH in just six hours. At ETH/USD prices on June 13, that amount was around $112 million.

Interestingly, Oasis borrowers have a total outstanding debt of around $120 million (measured in the DAI stablecoin), suggesting that whales have suffered severe “slippage” losses.

Ether price hits $667 – senior analyst

Ether’s journey to $950 was short-lived, suggesting that there is sufficient demand for coins approaching that level. Nonetheless, another analysis by veteran trader Peter Brandt pointed to ETH’s price falling to $650 in the coming weeks.

Brandt’s bearish outlook stems from a classic continuation pattern known as the “Descending Triangle” that resolves after price breaks out in the direction of its previous trend.

As Ether fell prior to the formation of the triangle, its path of least resistance is skewed to the downside.

ETH/USD daily price chart. Source: Peter Brandt/TradeNavigator

With the 20% price drop on June 13, ETH has reached the first downside target of the triangle at $1,268, according to Brandt. He expects the decline to continue, with ETH dropping another nearly 50% to $667.

Nonetheless, ether’s oversold Relative Strength Index (RSI) could lead to a sharp price reversal. Ethereum picked additional bounce cues from the 200-week simple moving average (200-week SMA; orange wave in the chart below) near $1,200, now acting as support.

ETH/USD weekly price chart. Source: TradingView

If ETH price experiences an upside retracement, the coin could have a medium-term bull target near $1,450, coinciding with the 1.00 Fibonacci line on the Fibonacci retracement chart from swing highs around $1,450 to $84 swing lows.

Related: Celsius exodus: $320M in cryptocurrency sent to FTX, user withdrawals suspended

Conversely, if prices close below the 200-week SMA, ETH could see $920 as its next downside target.

The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.



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