Ethereum price crash attributed to MEV manipulation: Report
Share
this
article
Ethereum
(ETH)
faced
a
nearly
5%
crash
in
one
hour
this
Thursday,
despite
the
anticipation
around
the
approval
of
spot
Ethereum
exchange-traded
funds
(ETFs)
in
the
US.
The
X
user
identified
as
ai_9684xtpa
pointed
out
that
this
was
likely
a
market
manipulation
movement
by
the
trading
firm
Symbolic
Capital
Partners.
“The
agency
sold
6,968
ETH
in
one
minute
at
20:56,
worth
$27.38
million,
with
an
average
selling
price
of
$3,930;
one
transaction
sold
3,497
ETH
on
the
chain
at
one
time,
and
the
bribe
cost
was
as
high
as
90
ETH,”
explained
ai_9684xtpa.
Such
transactions
are
known
as
MEV,
short
for
“maximal
extractable
value,”
which
consists
of
using
on-chain
resources
to
profit.
The
payment
of
90
ETH
suggests
a
hurry
to
sell
the
position
at
a
higher
price
to
make
it
crash,
possibly
to
buy
it
again
at
a
lower
price.
price
fluctuation
after
Symbolic’s
transaction.
Image:
CoinGecko
Since
the
crash,
Ethereum
has
ranged
in
and
out
of
the
$3,800
price
level
and
is
priced
at
$3,803.37
at
the
time
of
writing,
nearly
22%
away
from
its
previous
all-time
high.
“It’s
happening”
As
shared
by
Bloomberg
ETF
analyst
James
Seyffart,
an
approval
of
spot
Ethereum
ETFs
is
happening
this
Thursday.
Despite
the
low
odds
given
to
this
scenario
until
last
Monday,
Seyffart
and
his
fellow
Bloomberg
analyst
Eric
Balchunas
boosted
the
chances
to
75%
after
the
SEC
started
contacting
the
issuers.
Since
then,
various
asset
management
firms
presented
amends
to
their
19b-4
filings,
and
VanEck’s
Ethereum
spot
ETF
even
got
listed
on
DTCC
under
the
ticker
$ETHV.
The
first
final
deadline
is
today,
as
the
US
regulator
must
decide
on
VanEck’s
application.
Moreover,
according
to
Balchunas,
the
SEC’s
decision
on
spot
Ethereum
ETFs
might
come
at
4
pm
(EST).
Although
a
positive
outcome
is
expected,
it
doesn’t
mean
immediate
permission
for
trading.
Share
this
article
Comments are closed.