The month of June has been eventful for the price of Ethereum to say the least. It is the month we have seen it reach new heights and Break the $400 mark, which happens to be the first price target from our Bullish Ethereum forecast in Investing Haven. During the month of June, we have also witnessed a sharp correction that took a lot of investors by surprise.
In our article, Ethereum Correcting. Until Which Price Level Is It Bullish? We have covered in details Ethereum’s price action and the levels investors should be watching. In this article, we will cover the news part and what caused the flash crash we have witnessed this month to understand the impact of some events on both the short and long term trend.
On June 12th, Ethereum’s price hit a new high above $400 to retrace shortly after. On June the 21st, though, Ethereum’s price on GDAX went from $300 to 10 cents in a matter of seconds. A large market sell order caused a sharp price decline in ETH price triggering both stop losses and margin calls, which caused the price to fall even more. 45 Milliseconds later, algos started buying back and the price climbed to $300. GDAX was halted till the issue was solved.
After explaining the incident to their users and initially declining responsibility for Ethereum’s price Crash, Coinbase’s GDAX came back later and announced that they will honor buy orders during the flash Crash but will refund clients who had margin calls and stop losses triggered by the fast price action.
On June the 25th and 26th, another Flash Crash, 20% this time and mostly due to the rumors that Vitalik Buterin, Co-founder of Ethereum, passed away in a car crash. Vitalik posted his picture and denied the rumors shortly after.
Mainstream media, as usual, saw in these Flash Crashes the End of the Ethereum bull market along with the rest of the Cryptocurrencies. Most of them mentioned that the GDAX situation is a cause for concern and that it will end the confidence investors have in Ethereum and Cryptocurrencies. This is one example from CNBC and a quick search can lead you to many similar outlooks among other mainstream news outlets.
