30,000 ETH might have been dumped on Coinbase by a trader trying to get out of his ETH position

  • 24 June 2019, Monday, 11:00

Cryptocurrencies prices are very volatile. Hence, prices tend to fluctuate to a high degree and cause massive liquidations or profits. Since the crypto-sector is nascent, it is also plagued by market manipulation. However recently, Ethereum and Binance Coin markets were affected with slippage due to the execution of a large order.

On June 22 at 23:54 UTC, approximately, 30,000 ETH were dumped by someone trying to close his positions, causing slippage for almost 40 minutes. The price of Ethereum due to this slippage varied by approximately 3%. The chart attached below shows the same.

Slippage often occurs due to the difference between the intended execution price and actual execution price. However, it may also occur due to the execution of a large order when there isn’t enough volume at the chosen price to maintain the current bid/ask spread.

A Twitter user, @Crypto_marx, tweeted an image showing the sell-off of 30,000 ETH at approximately $300 for the same period on Coinbase.

DonAlt, a prominent crypto trader, tweeted,

“Looks like someone is trying really really hard to get out of ETH on Coinbase and doesn’t care about slippage at all. Haven’t seen this in a while. Market selling emptying the book every few seconds seems like a bad way to go about it.”

The same was witnessed on Binance Coin, which has been the top-performing crypto even through the bear market. The slippage here was at 8.35%, which was far higher than that of Ethereum.

However, unlike Ethereum, BNB was seen being pulled both to the upside and the downside. Slippage isn’t generally bad, and in Ethereum’s case, the overall hourly candle showed a green candle with an unusually high volume, which is due to the sell-off of approximately 30,000.

Ethereum, at press time, was at $306.56 with a market cap of $32 billion. YTD, Ethereum’s price has been positive and up by 137.56% whereas, BNB has performed far better than Ethereum and its YTD is up by 540%.

Source: ambcrypto.com