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The second-largest cryptocurrency, Ether (ETH) went through a sudden flash crash on popular exchange Poloniex. It saw its price dropping down with 20% in an instant, allowing those who had placed orders along the way to benefit from the quick recovery.
ETH Flash-Crashed On Poloniex
Flash-crashes tend to take place every now and then on the cryptocurrency market. Just now, Ether (ETH), the second-largest altcoin went through a sudden steep drop which saw its price being reduced by as much as 20% on Poloniex when trading against BTC.
As seen on the chart, ETH dropped down to about 0.0170BTC from 0.0211, marking a sudden violent decrease of about 20%. Naturally, the price went up as quickly as it went down, allowing those who had placed orders in between to realize quick and easy gains.
The reasons for the flash crash remain unknown. However, it’s not the first time ETH has seen such an event. As CryptoPotato reported last December, ETH went through a more serious flash-crash, dropping from about $100 to $13 on Coinbase Pro, formerly known as GDAX.
There have always been speculations as to the reasons of abnormal price behavior of the kind and some hold that it may because of a sudden ICO fund cash-out or even a whale making a mistake in placing his sell orders.
What Is a Flash Crash And How To Profit?
A flash crash is nothing but a sudden violent downward swing in the price of an asset which usually ends up with a quick recovery, as it is the case with ETH today.
As we’ve previously mentioned in our Bitcoin and Altcoins trading tips, having low orders placed is something that could be very wise on occasions of the kind.
A successful strategy regarding this is placing very low buy orders. About a week ago a crazy dump occurred, selling off Augor coin down to 25% of its value! After a short while, the market recovered slightly and anyone who had low buy these low orders could easily double or triple their investment. Placing buy orders requires special care, don’t wake up when you’re far away from the market to find your buy order is suddenly higher than the current market price.