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Atypical performance isn’t something new for cryptocurrency assets. Flash crashes and massive positive wicks have taken place in the past.
Just yesterday, ETH went through something similar. The price of the asset shot up by almost 50% only to crash immediately down to $197 and settle to where it’s currently trading on Binance.
ETH Price Going Crazy on Binance Perpetual Contract
In the span of a few hours yesterday, October 28th, the price of ETH on Binance’s perpetual contract went parabolic.
In a single massive candle, ETH shot up to $571, charting a 45% increase before retracing back to its regular trading price at around $390. While this might sound awkward enough, that’s not all.
A couple of hours later, the price wicked to the downside, touching a low of $197, charting a decline of about 50%, and immediately returned to its regular rates.
Commenting on the matter was Aaron Gon, VP of Binance Futures, who said:
This happened on ETHUSD Perp futures. It was caused by one trader, both ways. We believe this may be intentional sabotage from a competitor. The trader lost lots of money himself. But also caused other stop orders to trigger. We will make a few changes to reduce in the future.
Since then, the price of ETH has stayed relatively stable, and it’s currently trading at around $387 for a 6.6% decrease in the past 24 hours.
No Strangers to Flash Moves
As mentioned above, the community is absolutely no stranger to massive wicks of the kind. CryptoPotato reported in late November 2019 that ETH went through a flash crash on the popular cryptocurrency exchange Poloniex.
Back then, the price fell by as much as 20%. The main difference is that it was trading against Bitcoin.
On another occasion, Bitcoin’s price dropped to a low of $680 trading against the USDS stablecoin. This also happened on Binance back in December 2019.
Flash moves of the kind are usually categorized by their speed. In other words, the price would move in any direction, charting a massive decrease or increase in a few seconds or minutes, and it would then return back to its standard range.
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.