ETH’s price soared yesterday. The cryptocurrency hit a $ 571 high in Binance’s perpetual contract only to drop to $ 197 later.
Atypical performance is nothing new for cryptocurrencies and ETH. Rapid crashes and massive gains have occurred in the past.
Just yesterday, ETH went through something similar. The asset price skyrocketed nearly 50% only to immediately drop to $ 197 and settle where it is currently being traded at Binance.
ETH price going crazy in Binance’s perpetual contract
Within a few hours of yesterday, October 28, the price of ETH in Binance’s perpetual contract has become parabolic.
In a single huge candle, ETH soared to $ 571, drawing a 45% increase before returning to its normal trading price at around $ 390. While this may seem strange enough, it is not all.
A few hours later, the price fell to the negative side, reaching $ 197, registering a decline of about 50%, and immediately returned to its normal rates.
Aaron Gon, VP of Binance Futures, said:
“What happened to ETH was caused by a trader, in both ways. We believe this could be intentional sabotage by a competitor. The trader himself lost a lot of money. But it also caused other stop orders to be triggered. We will make some changes to reduce these movements in the future. ”
Since then, ETH’s price has remained relatively stable and is currently trading around $ 387, with a 6.6% reduction in the past 24 hours.
These movements are not so atypical
As mentioned above, this type of movement is not so atypical. In late November 2019, ETH experienced a sudden failure at the popular cryptocurrency exchange Poloniex.
At that time, the price fell by up to 20%. The main difference is that he was trading with Bitcoin.
On another occasion, Bitcoin’s price fell to a low of $ 680 by trading against the USDS stablecoin. This also happened at Binance in December 2019.
Movements of this type are generally categorized by their speed. In other words, the price would move in any direction, drawing a massive increase or decrease in a few seconds or minutes, and then return to its standard range.