On June 13th, the top altcoin, Ether (ETH) dropped to a low of $950 on Uniswap, a leading decentralized exchange. This spot is roughly 20% lower than its spot rate across other exchanges. But, the question is what led to such an incident?
Over $130M ETH sold in six hours
The event took place at around 3:00 am UTC, after a whale dumped 65,000 ETH for several stablecoins including Tether (USDT), Dai (DAI), and USD Coin (USDC).
As per the sources, the whale made the sale of its ETH holdings to settle a debt worth $73 million at a DeFi lending platform, the Oasis. app. The liquidation price of ETH dropped from $1,200 to $875, as witnessed by the duration of the sell-off.
Just five hours after the sell-off, the Oasis borrower dumped another set of 28,000 ETH in order to pay off another debt worth $32 million. However, this time, the liquidation price increased from $892 to $1,200
As a consequence, the whale dumped around 93,000 ETH in just the span of six hours. The amount is equivalent to roughly $112 million as per the ETH/USD price, recorded on 13th June.
The total outstanding debt was recorded to be around $120 million in terms of DAI stablecoin, indicating that the whale might have experienced heavy losses.
Ether price eyes $667 — veteran analyst
However, Ether was trading at $950 for just a brief period of time, pointing towards an adequate demand for the tokens near the level. Peter Brandt, a veteran trader, did an analysis in which he concluded that the price of ETH might fall to $650 in the coming weeks.
The bearish trend forecasted by Brandt has its root in a classic continuation pattern called the “descending triangle,” which resolves after the price breaks out in the direction of its previous trend.
Ether’s path of least resistance was skewed to the downside as Ether was dropping before the triangle’s formation.
Brandt further states that ETH’s price declined 20% on June 13, and the ETH reached the triangle’s first downside target of $1,268. He expects the dip to continue as ETH declines by 50% to $667.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.