Ethereum’s price briefly fell to $237 on Kraken, which usually handles about $20 million worth of eth/usd trading volumes within 24 hours.
The flash crash occurred earlier today at about 4:59 AM London time with the reason for it remaining unclear as Kraken has not publicly said there was any glitch.
It may well be, therefore, this was a big market order or perhaps a fat finger with about 18,000 eth sold and bought within 1 minute at precisely 4:59AM London time.
That strongly suggests someone market sold about $5.2 million worth of eth, either intentionally or by accident, with price then returning to normal levels on increased volumes.
That was just as Europe was about to wake up, with crypto prices usually moving significantly at around six in the morning London time.
That would be around 2PM in China and in Asia more widely, indicating that it may have been a trader who perhaps misplaced a comma or accidentally added too many zeros.
It does also more generally indicate some jitteriness following a nine months long bear market with these flash crashes usually a sign of the market over extending itself.
Ethereum has been trying to overtake $300 in the past few days, but without much success to the point bitcoin traders are now complaining it is keeping their crypto down too, but btc rose slightly today while eth hasn’t moved much.
Ethereum has been sidewaying for about four weeks after falling pretty much straight down since May without any bounce or upwards correction.
Many therefore are looking to see how its price action will develop as that period of sidewaying for the past few weeks might suggest some sort of bottom may be in sight, but how it will break out when it decides to move remains very much to be seen as the bear market seemingly continues.