ETH/USD – Ethereum Price Daily Analysis – Ethereum Crashes Following Death Rumor

ETH/USD – Ethereum Price Daily Analysis – Ethereum Crashes Following Death Rumor

Quite recently, on June 25th, rumors about Ethereum founder Vitalik Buterin’s death rose on the popular online forum 4Chan. The post read ‘Vitalik Buterin confirmed dead. Insiders unloading ETH’. This is what followed.

ETH refers to Ethereum, the digital currency, which is widely known for its volatility. The currency price shifts by over $50 almost every day. So, ETH traders are quite sensitive to rumors and insider information which can lead to the flash crash that happened on the 25th. The price went from around $330 to $280, after which it recovered for the rest of the day. ETH recovered primarily because the founder uploaded a picture of himself proving that he is alive and the 4Chan post was fake.

 

Screen-Shot-2017-06-29-at-4.27.25-PM ETH/USD - Ethereum Price Daily Analysis – Ethereum Crashes Following Death Rumor

Vitalik’s selfie

The selfie that Vitalik uploaded on Twitter

This event pushed Ethereum traders to become even more reactive. Yesterday after a multi-million dollar trade, Ethereum prices on GDAX went from $350 to around $0.10, after which the platform was shut down due to very low price trades. Some traders complained about trades that went through at an exchange market price of $0.10, which resulted in losses of over $5000 for many traders. This loss shook up the traders and people started to lose confidence in Ethereum, many of them abandoning the currency.

Fortunately, the currency regained and is now trading at $292.80.

Ethereum lost over $4 Billion in market value due to this flash crash. The currency is now trading at a price lower than $350, but is steadily recovering. This is indicative of a deeper problem with Ethereum, the volatility of the market makes the traders quite reactive to any move in the market. This time, the currency almost crashed due to an apparent death of the founder.

So is it the end of Ethereum?

Not at all, Ethereum is back up and trading high, which means investors haven’t lost their faith in the currency. The crash gave all signs of a bubble burst; but eventually, the currency was able to recover.

I think this goes a long way people who fail to put trust into a cryptocurrency thinking it will eventually burst. Unfortunately, the last crash had all the necessary conditions for a burst and yet traders have high hopes for the future!

view more articles

About Article Author

Martina Kelowsky
Martina Kelowsky

Currently working on her Master Degree in Economics & Computer Science she lives in Russia. She is a Bitcoin Enthusiast since 2013 and Investor in various ICO since 2014. She aims to democratize a future where money is decentralized and transaction anonymous.

View More Articles