At Poloniex Ethereum price fell 20%

In the evening of October 1, Ethereum suddenly crashed in Poloniex, resulting in a 20% loss in value in just a few minutes. Poloniex is one of the largest cryptocurrency exchanges in the world, ranking second in the ranking (CryptoCompare data).

A sharp increase in volume was noticeable, which was caused by a sharp drop, and is very similar to a planned stock. This huge sale could have been triggered by an ICO or cash withdrawal by whales.

As for the fall, no assumptions were made, either about a possible algorithm error or about market makers, since this is a market with huge volumes and is difficult to manipulate. In addition, it is unlikely that such an operation could have been caused by an error, followed by such a sudden correction. The exchange also made no official statements.

Such events are not new in themselves and facilitate entry into the market at very competitive prices. For example, in early June, there was a sudden BTC price crash on Kraken, which in a few minutes depreciated to $ 100.

The reason is that some exchange pairs have such low volumes that they are easy to manipulate. In addition, since these markets are unregulated, such transactions are actually permitted.

So what happened with Ethereum at Poloniex few people are surprised. Ethereum is more prone to such crashes than other cryptocurrencies, because many ICO projects have accumulated ether and may decide to sell at any time.

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