Ethereum Drops Below $950 On Uniswap Overnight – Here’s Why

Christian Encila

3 years ago

3 mins read

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Ethereum Key Takeaways:

– ETH prices have plummeted below $1300
– Selling pressure intensifies, which triggers the decline.
– Dire price forecasts for ETH

Having lost about 20 percent of its value over the past 24 hours and hovering around $1,200 on Monday morning, many crypto investors and market observers are prepared for a massive Ether decline back into the triple digits.

On the decentralized exchange Uniswap, however, it occurred late Sunday night, albeit momentarily, as ETH retreated below the spot price, relative to other exchanges, to $950.

The duration of the sell-off saw ETH’s liquidation price dropping from $1,200 to $875.

$ETH went to $945 on uniswap pic.twitter.com/XybAcnkMCH

— Ash Crypto (@Ashcryptoreal) June 13, 2022

Whale Dumps Over 65K ETH

A whale unloaded over 65,000 ETH into the market for numerous “stablecoins,” including Tether (USDT), USD Coin (USDC), and DAI, at approximately 3:00 am UTC.

The big sell-off observed on the worldwide market has a significant impact on the ETH price. Tuesday’s trade price for ETH is $1,160.20, up 35 percent in the last seven days, according to statistics from Coingecko.

The market value falls below $1300 as the death spiral approaches the upcoming support at $1000. Analysts are currently pondering if Ethereum’s market price would drop below $1,000 or see a bullish reversal.

As the price was much lower compared to the spot rate on other exchanges, which hovered around $1300 at the time, the ETH overselling was closely tracked on Crypto Twitter.

Ethereum Flash Crash Tied To Debt Payoff

A piece of evidence indicated that the whale sold its ETH holdings to settle over $73 million in debt at DeFi’s Oasis.app lending platform. Throughout the period of the selloff, the liquidation price of ETH dropped from $1,200 to $875. Nonetheless, it was a momentary flash crash for Uniswap, and the price recovered in tandem with the rest of the market.

https://twitter.com/dcfgod/status/1536200127005659136?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1536201093851582464%7Ctwgr%5E%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fethereum-price-flash-crashes-to-950-on-uniswap-as-whale-dumps-93k-eth

Why this whale’s massive ETH spill is significant? Such swings might be damaging to token prices under unfavorable market conditions, particularly during strong downtrends. Therefore, major position holders must exercise caution while selling their positions on exchanges and decentralized platforms.

ETH total market cap at $148 billion on the daily chart | Source: TradingView.com

ETH’s technical indicators, such as the RSI, are currently well into oversold territory. Despite the possibility of a slight rebound to the upside, the bear market is only intensifying, indicating that Ethereum and all other cryptocurrencies are expected to continue feeling the pinch for some time.

Meanwhile, Ether’s rise to $950 was quick, indicating that there was sufficient demand for the tokens at that level. Yet another research, this one from veteran trader Peter Brandt, predicted ETH would drop to $650 within the next few weeks.

Featured image from Blockworks, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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