On Uniswap, the price of Ethereum plummets to $950 when a whale dumps 93K ETH.
On Uniswap, the price of Ethereum plummets to $950 when a whale dumps 93K ETH.
After plunging to $950, ETH has made a strong comeback. However, the ETH/USD bearish continuation pattern may force it to do so again.
On June 13, Ethereum's native token, Ether (ETH), dropped to $950 on Uniswap, a decentralised crypto exchange, roughly 20% lower than its spot rate on other exchanges.
Of just six hours, over $130 million in ETH was sold.
A whale unloaded 65,000 ETH for numerous "stablecoins," including USD Coin (USDC), Tether (USDT), and Dai (DAI), at roughly 3:00 a.m. UTC (DAI).
The whale liquidated its ETH holdings to pay off roughly $73 million in debt at Oasis.app, a DeFi lending marketplace, according to evidence. ETH's liquidation price fell from $1,200 to $875 over the course of the sell-off.
To repay another $32 million in debt, the Oasis borrower continued the selling rampage, dumping another cache of roughly 28,000 ETH five hours after the first selloff. The liquidation price increased from $892 to $1,200 this time, as indicated below.
As a result, the whale flushed 93,000 ETH in less than six hours. At the current ETH/USD exchange rate of $112 million, the total is around $112 million.
The total outstanding debt of the Oasis borrower was around $120 million (measured in DAI stablecoin), implying that the whale faced significant "slippage" losses.
The price of Ether is aiming for $667, according to a senior analyst.
Ether's excursion to $950 was brief, indicating that there is sufficient demand for the tokens near that level. Nonetheless, veteran trader Peter Brandt predicted that the price of ETH will decrease to $650 in the following weeks in a separate research.
Brandt's gloomy perspective stemmed from a common continuation pattern known as a "descending triangle," which resolves when the price breaks out in the direction of the prior trend.
Ether's path of least resistance was skewed to the negative because it was declining prior to the triangle's creation.
As the price fell 20% on June 13, Brandt claims ETH had surpassed the triangle's first downside goal of $1,268. He expects the falls to continue, with ETH plummeting nearly 50% to $667 in the near future.
Despite this, Ether's oversold relative strength index (RSI) may cause a dramatic price reversal. Ethereum is picking up more recovery signs from its 200-week simple moving average (200-week SMA; the orange wave in the chart below), which is presently acting as support near $1,200.
If the price of ETH rises, the token's interim bull objective might be approximately $1,450, which corresponds to the 1.00 Fib line of the Fibonacci retracement graph created from the swing high of $1,450 to the swing low of $84.
A conclusive close below the 200-week SMA, on the other hand, may see ETH target $920 as its next negative objective.
