Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension
In Monday’s crypto carnage, the market provided a hefty discount that people have been calling out for some time now, with the digital assets rallying hard.
The overall cryptocurrency market lost $240 billion, but since then, it has gained some $86 billion back as the prices of cryptocurrencies make a recovery.
While Bitcoin went under the $50,000 level, Ethereum went under $1,550. But what has been interesting and for some devastating, the price of Ether went to $700 on Kraken.
The cryptocurrency exchange had some wild price action on Ether as after such a discounted opportunity, it went back right above $1,700 and caught up with other exchanges soon after.
ETHUSD on Kraken traded < $750 pic.twitter.com/0EyPnnoDmY
— skew (@skewdotcom) February 22, 2021
This hasn’t even been a one-time thing as popular crypto personality, CryptoCobain, tweeted, “People trading on Kraken are masochistic. Once per month they get completely fucked by the matching engine.”
While for leveraged traders, it was a disaster, this also turned out to be a perfect opportunity for spot buyers.
“Unbelievable, my fishing ETH orders below $1.2k have been filled on Kraken,” tweeted one trader, who is extremely bullish on Ether and has long been calling out for a $10,000 price target for the second-largest cryptocurrency in this cycle.
On top of the deep red market, this much price volatility sent the gas prices on the network soaring. This made trading on-chain nearly impossible, let alone allowing traders to front-run.
Exchanges were already struggling with too much activity, with Kraken reporting, “Due to heavy traffic you might experience some connectivity issues. We are working to resolve the issue as soon as possible.”
Then, this congestion due to demand spikes on the Ethereum network led to delays with ETH and ERC20 token withdrawals.
“Binance has temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion. Rest assured funds are SAFU, and we apologize for any inconvenience caused,” informed the leading spot exchange.
ETH is super congested now, at 1200+ gas. @Binance have suspended withdrawals.
There was a conspiracy theory that Binance is deliberately making ETH gas fees high. 😂 Let's see it come down a bit. pic.twitter.com/tNK9b3b9OK
— CZ 🔶 Binance (@cz_binance) February 22, 2021
For now, things are slowly coming back to normal, ETH is currently around $1,750, and Bitcoin is back above $53,500.