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Ethereum Bounced Back Immediately After Crashing To 10 Cents

June 28, 2017
By Daisy Joseph
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The digital currencies are extremely volatile in the currency market. Yesterday, Ethereum has been having a bad day when the network upgrade didn’t meet the demands of the market. Earlier on Wednesday, the cryptocurrency was trading at $317. Within a few seconds, the currency value reached as low as 10 cents. The reason behind this historic and unforeseen crash is a multimillion dollar sell order.

The vice president of GDAX, Adam White explained the events that unfolded on late Wednesday in his blog. Numerous multimillion sell order resulted in currency value going as low as $224.28 from $317.81. The price continued to tumble down for the remaining 800 stop loss orders. The margin funding liquidation resulted in Ethereum reaching 10 cents. The shocking orders that were executed are not reversible according to White.

The resilient crypto currency didn’t plummet following the crash. It immediately bounced back overnight recovering almost all the losses. On Thursday morning trading, Ethereum was traded at $324. This is about 3% less compared to earlier trading. However, the cryptocurrency has gained a huge 3600% just in 2017.

The investors are now wary of investing in digital currencies because the network system is not unable to meet the huge demands. As a result, Bitcoin stalled on Thursday trading while it was traded at $2665. Earlier in the past week, Bitcoin reached its peak value of $3000 per bitcoin. On Thursday, Bitcoin lost about 2%, but the value has appraised so much in recent times.