Lucky individuals got hold of the third-ranked Cryptocurrency right now which is Ethereum at a major discount! The price fell to a whole new low to $13.05 on Coinbase.
It looked like a flash crash on the trading pair of ETH/USDC. A Cryptocurrency trader by the Twitter handle @ColeGamerBTC tweeted about the ridiculous drop in price.
$ETH flashcrashed to $13 on GDAX!
Filled all my low orders. ALL OF THEM.
What the FUCK just happened?
Who else got filled on this? pic.twitter.com/h0Kseg97ul
— Cole Garner (@ColeGarnerBTC) December 6, 2018
It, however, did not occur on the trading pairs of ETH/EUR and ETH/BTC.
The most likely scenario of such a walloping dive from the current prices of Ethereum $100 to $13.05 is a significant sell-off. It could be either be a sell-off from an ICO or an individual who decided to exit the market in bulk.
It is not the first time such a price fall due to a sell-off has occurred. In June 2017 an Ethereum whale dumped 35,000 Ether on the market in one go, which led to Ethereum falling from $318 to $0.10 in less than a second.
The drop occurred on GDAX exchange which is currently Coinbase Pro. In the scenario of June 2017, the price of Ethereum fell from $317.81 to $224.48 and hence resulted in 800 stop loss orders being triggered.
The lucky ones got their hands on Ethereum at $0.10 and bouncing it back to $300 due to the tremendous demand of Ether leading to gains of a whopping 300,000%.
Stop orders can be defined as an order placed to sell a Cryptocurrency when it reaches a certain price usually out of protection.
Such a scenario experienced hardly ever occurs, but if it does, it tends to leave traders with stop loss executed losing a lot of money and the lucky few purchasing at much below regular prices.
Take a look at a trader who had a buy order of over 80,000 Ethereum at $0.10 but just before his order executed the price went back up.
— Ardon Lukas (@DisruptVegas) November 14, 2018
Who knows it may happen soon. So keeping buy orders at ridiculously low prices may not be such a bad idea after all!
Image Source – Flickr
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