The reason why Ethereum price dumped by 10% in just a few minutes

The second-largest cryptocurrency by market capitalization has seen prices plummet today, following the collapse of No.1. Ethereum has dropped by about 10% in just a few minutes.

Chainalysis has stated that PlusToken, a Chinese billion-dollar Ponzi scheme, has been selling off a large number of different digital assets on the market and there will be further landfills.

AZCoin News reported on the sudden collapse of the Bitcoin market that brought the price below the psychological support of $ 7,000 for the first time in weeks.

Trader “Hsaka” pointed out that ETH dip took place just about two minutes before Bitcoin.

Ether is trading at a high of $ 142.5 today and a low of $ 128. This represents a total reduction of more than 10%. The drop only takes a few minutes. ETH is trading at around $ 130 at the time of writing, according to TradingView.

Ethereum price 2

Daily Ethereum price chart. Source: TradingView

Analyst “Light” believed that Ethereum has led the decline due to Chainalysis’s sloppy report. The company’s latest report states that PlusToken still has 6.4 million more ETH. However, the trader said that the real number was nearly 789,000.

Ethereum will struggle in 2020

Research firm Messari made their contributions in the ‘Crypto Thesis for 2020’ report, showing a gloomy future of ETH but this is not an objective analysis. The report was accepted by founder Ryan Selkis.

The report states that there will be no ETH 2.0 until 2022 because Serenity consists of seven phases.

  • Phase 0 or the Beacon Chain, likely to be launched around 2020.
  • Phase 1 will introduce 64 shard chains expected until 2021. Upgrading this parallel processing will be the key to replication but the report goes on to add that no network has successfully sharded its blockchain.
  • Phase 2 is the full launch comprising a new eWASM virtual machine and moving large dApps through smart contracts. Naturally, this will not be rushed and likely by the end of 2021.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like