The Price Of ETH Suddenly Collapsed From $100 To $13 On Coinbase Pro This Morning
Coinbase Pro, formerly known as GDAX, experienced one of the worst flash crashes in crypto history earlier today.
The price of ETH, which has already been hit hard these past few days, suddenly plummeted from $100 to just $13 on Coinbase Pro. The incident, as reported by The Next Web, took place at around 6am UTC. Within minutes, the price of ETH had climbed back to the $100 mark.
Nevertheless, the flash crash remains on record on Coinbase Pro’s price charts. You can see a sudden and dramatic spike where the price appeared to fall to $13 before rebounding shortly afterward.
The price of ETH has since rebounded, with the price hovering around $100 for most of the day today, periodically dipping below $100. As we go to press, the price of ETH is sitting at around $97.
Ethereum has fallen rapidly in recent months to become the third largest cryptocurrency by market cap. The cryptocurrency has been surpassed by XRP, which now occupies the number two position behind bitcoin.
The anomaly appears to have been limited to Coinbase Pro’s USDC markets. The USDC is a dollar-pegged stablecoin issued by New York-based Circle.
Soon after the crash, concerned traders took to social media to express their concern and inquire why the crash occurred. Coinbase has not yet issued an explanation for the crash.
Obviously, this isn’t the first time such a crash has been seen in the crypto industry. They’re called flash crashes. Some flash crashes occur due to genuine panic and selling activity in the crypto community. Other flash crashes are technical glitches or mistaken sell orders. With a flash crash, the price generally rebounds immediately after the drop. With an ordinary crash, prices fall and stay low for an extended period of time.
Ethereum went through one of the most infamous flash crashes in history in 2017, when the popular cryptocurrency fell from $300 to $0.10. The price swiftly recovered, and it was unclear what caused the flash crash at the time. That incident, however, led many Ethereum traders to lose large sums of money.
Interestingly, that infamous 2017 flash crash occurred on GDAX, which rebranded to Coinbase Pro earlier this year. So now, GDAX has hosted two of the most significant flash crashes in Ethereum history.
Ultimately, it’s unclear what caused the latest Ethereum price crash. However, with cryptocurrencies plummeting across the board, many traders are understandably concerned.