The crypto market dumps strongly; ETH is about to set up a 10-week series of continuous declines. stETH loses peg; when swapping 1 stETH, users only get ~0.95 ETH. With significant positions, the slippage can be even more severe.
Suspected ETH Dumping Related To stETH
The downward trend of significant cryptocurrencies continued from June 11 to June 12.
As of the morning of June 12, Bitcoin (BTC) had dropped to $ 27,249, the lowest value threshold since the $ 26,700 mark on May 12 – the time when LUNA-UST collapsed.
Meanwhile, Ethereum (ETH) is even more “disastrous”. With the current situation, ETH will likely end this week with a red candle – extending the record of 10 consecutive red candle weeks.
Although The Merge test on the testnet was successful, since the release of stETH until now, the price of ETH has plummeted by more than 15% from the peak of $ 1681 to $ 1427. The ETH price has now hit the support area on the daily frame, which is also the old peak of the previous uptrend season. The RSI and MACD have both reached the oversold zone. So the price of ETH is being held here.
The cause comes from the “FUD” related to stETH (ETH staking on Lido protocol) being depeg and the Celisus lending platform having liquidity problems related to ETH, which are believed to be the main reasons driving the ETH price downward.
Not stopping there, at the meeting on June 10, the Ethereum development team decided to delay the “difficulty bomb” mechanism until mid-August 2022 to have more time to review the system and find new solutions. Potential vulnerability after Ethereum 2.0’s Beacon Chain and Ethereum 1.0’s Ropsten reported problems in early June. Many fear this is a signal for The Merge to continue to be delayed.
If Ethereum falls to $1,150, around $500 million in ETH will be collateralized for DeFi loan orders to be liquidated, creating more pressure on the market. Meanwhile, over $300 million in WBTC will be liquidated if Bitcoin falls to $21,600.
In addition, the price of stETH is not stable at the moment and is still fluctuating around 4% whether stETH is like Luna’s UST.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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stETH Loses Peg, ETH Dumps Hard
The crypto market dumps strongly; ETH is about to set up a 10-week series of continuous declines. stETH loses peg; when swapping 1 stETH, users only get ~0.95 ETH. With significant positions, the slippage can be even more severe.
Suspected ETH Dumping Related To stETH
The downward trend of significant cryptocurrencies continued from June 11 to June 12.
As of the morning of June 12, Bitcoin (BTC) had dropped to $ 27,249, the lowest value threshold since the $ 26,700 mark on May 12 – the time when LUNA-UST collapsed.
Meanwhile, Ethereum (ETH) is even more “disastrous”. With the current situation, ETH will likely end this week with a red candle – extending the record of 10 consecutive red candle weeks.
Although The Merge test on the testnet was successful, since the release of stETH until now, the price of ETH has plummeted by more than 15% from the peak of $ 1681 to $ 1427. The ETH price has now hit the support area on the daily frame, which is also the old peak of the previous uptrend season. The RSI and MACD have both reached the oversold zone. So the price of ETH is being held here.
The cause comes from the “FUD” related to stETH (ETH staking on Lido protocol) being depeg and the Celisus lending platform having liquidity problems related to ETH, which are believed to be the main reasons driving the ETH price downward.
Not stopping there, at the meeting on June 10, the Ethereum development team decided to delay the “difficulty bomb” mechanism until mid-August 2022 to have more time to review the system and find new solutions. Potential vulnerability after Ethereum 2.0’s Beacon Chain and Ethereum 1.0’s Ropsten reported problems in early June. Many fear this is a signal for The Merge to continue to be delayed.
If Ethereum falls to $1,150, around $500 million in ETH will be collateralized for DeFi loan orders to be liquidated, creating more pressure on the market. Meanwhile, over $300 million in WBTC will be liquidated if Bitcoin falls to $21,600.
In addition, the price of stETH is not stable at the moment and is still fluctuating around 4% whether stETH is like Luna’s UST.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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