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




Source: Unsplash

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.

Source: TradingView

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.

Source: Twitter | @crypto_marx

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.

Source: TradingView

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%.

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