Ethereum’s native token (ETH) dropped to $950 on Uniswap — a decentralized crypto exchange — on June 13, about 20% lower than its spot rate on other exchanges.
Over $130M ETH Sold in Six Hours
The incident took place around 03:00 UTC after the whale dumped 65,000 ETH on several stablecoins including USD Coin (USDC), Tether (USDT) and DAI.
BUT evidence noted that the whale sold his ETH holdings to pay off nearly $73 million in debt on Oasis.app, a DeFi lending platform. During the sell-off, the liquidation price of ETH dropped from $1,200 to $875.
non-liquidation, someone sells collateral to pay off a debthttps://t.co/tceIla0xuF pic.twitter.com/KwIholu1St
– mariano.eth ༼ ༼ จ ل͜ จ ༽ ᕗ✨ | (@nanexcool) June 13, 2022
Borrower Oasis continued the sell-off – throwing away another stash of almost 28,000 ETH five hours after the first sell-off – to pay off another $32 million of debt. This time the liquidation price increased from $892 to $1200 as shown below.
As a result, the whale dropped about 93,000 ETH in just six hours. The amount is approximately $112 million at today’s ETH/USD price.
Interestingly, the total outstanding debt of the Oasis borrower was around $120 million (measured in DAI stablecoin), suggesting that the whale suffered a large loss due to slippage.
wtf… was that a wrong click? https://t.co/POURtN4F6s
— Jonathan Howard (@staringispolite) June 13, 2022
Ether Price Closes To $667 – Veteran Analyst
Ether’s trip to $950 was short, indicating adequate demand for tokens near the level. However, one separate analysis from seasoned trader Peter Brandt indicated with the price of ETH dropping to $650 in the coming weeks.
Brandt’s bearish outlook arose from a classic continuation pattern, dubbed the “descending triangle,” which resolves after price breaks in the direction of its previous trend.
As the aether fell to form a triangle, its path of least resistance was shifted to the downside.
Brandt says ETH hit the first triangle downside target of $1,268 as the price dropped 20% on June 13th. He expects the decline to continue, with ETH falling another nearly 50% to $667.
However, Ethereum’s Relative Oversold Strength Index (RSI) could lead to a sharp price reversal. Ethereum is choosing additional bounce signals from its 200-week simple moving average (200-week SMA; orange wave in the chart below) near $1,200, which is now serving as support.
If the price of ETH suffers an upward pullback, then the token’s interim bullish target could be around $1,450, coinciding with the 1.00 Fibonacci line on the Fibonacci retracement chart, drawn from a swing high around $1,450 to a swing low of $84.
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Conversely, a decisive close below the 200-week SMA could see ETH target $920 as the next downside target.
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Credit : cointelegraph.com