Ethereum makes less than $ 500 on the major futures exchange as the market (finally) gives way

The cryptocurrency market has grown enormously from 2017 to 2018, with the introduction of complex derivatives, regulation and liquidity through major market makers such as Jump Trading and Alameda.

But the market is far from perfect: just recently, the price of Ethereum dropped below $ 500 on one of the major futures exchanges, while ETH was trading at $ 600 in the rest of this market.

Like Ethereum it lost less than $ 500 while the rest of the market was trading at $ 600

After reaching a peak of around $ 620 on Monday, Ethereum began to decline on Tuesday evening.

Altcoins got heavy as Bitcoin stole the show, approaching $ 20,000 for the first time from its previous all-time high in 2017. ETH fell from those highs of $ 620 to around $ 590 on Tuesday night.

While there have been no signs of a sharp decline to come, some traders have been quick to view the inconvenience as a sign of the worst things to come.

Merchant “Hsaka” noticed that within minutes, an entity apparently sold $ 30 million worth of Ethereum via ByBit, a leading futures exchange. The problem was that the user was using a “market order” to sell that amount, which means that his sales automatically matched the bids on the books at any price.

The market was unable to handle this selling pressure, resulting in a $ 485 wick from around $ 600.

It is unclear who sold the coins and why they sold them so quickly.

Of note, some benefited from the move, with Hsaka specifically noting that a trader was replenished for $ 1.5 million of Ethereum at $ 518. That user, once the market recovered, immediately rose by the 14% (times the amount of leverage he took).

ByBit CEO is trying to rectify users harmed by the incident. He he wrote today:

“Bybit has had two main benefits over ETH, if a stop loss, conditional or customer limit order was triggered and executed on the off-market price, contact our support and we will review and refund. live as they are pretty overloaded now)

This isn’t the first time this has happened in the cryptocurrency space – some pairs on Kraken (BTC / CAD) and Coinbase have famously fallen as low as $ 0.01 or the $ 1 range in the past due to market manipulation or large fat finger sales.

Perspectives of ETH

While it appears this wick came about as a result of someone trying to secure Ethereum’s profits, many are confident the coin is poised to climb higher.

For one, ETH2 was recently confirmed to take place on December 1st as 524,000 ETH has been sent to the validation contract.

Many expect this update to end up giving Ethereum a natural minimum price due to the natural interest users will receive from joining the ETH2 network as a validator. The update should also increase the usability of the network, which should increase ETH’s usefulness.

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