Ethereum Dumped 10% Overnight: Possible Reasons Why

The night has brought a new dump on the markets – and this time the altcoin news show that Ethereum dumped 10% overnight, but no one seems to know the reasons for it yet. It all started with Bitcoin faced a sharp drop that sent it to lows of $9,500 after which it reversed.

Ethereum, however, has been reeling down 10% to a major support level at $185 and the latest drop may have been perpetuated by a Chinese Ponzi scheme which scammed a total of 800,000 ETH from unsuspecting investors, as the news showed.

Now that Ethereum dumped 10%, its current price is $183 and it is hard for the cryptocurrency to rise again to $200. In fact, the drop was from $200 in less than 24 hours, which makes ETH vulnerable at this point.

Also, the leg down comes about as the entire cryptocurrency market faces a massive sell-off. The latest cryptocurrency news show that a lot of altcoins have dumped 10% or more – with EOS and Tron among the losers yesterday.

The reasons for this are still unknown. However, we know that Bitcoin is a major catalyst to both gains and losses – which is probably why Ethereum dumped 10% overnight. The good news are that Bitcoin has since recovered and is trading very close to the key psychological price level of $10,000.

In spite of the recovery, most of the altcoins are still trading at or just above their 24-hour lows as the coming altcoin news show. Ethereum dumped 10% but is now posting a minor recovery from the bottom of $176 which it touched overnight.

According to Dovey Wan who is a founding partner at Primitive Crypto, the  (Chinese Ponzi) scam and their wallet holdings currently have 70,000 Bitcoin and 800,000 Ethereum, which may be ultimately dumped onto the fragile markets.

“JUST IN: as per sir @loomdart‘s request, this thread is abt the on-going sells off made by PLUS Token, the biggest Chinese PONZI which scammed ~70K $BTC + ~ 800K $ETH. I mentioned it briefly in my last Coindesk oped but worth additional attention as it may cause further sells,” she noted.

JUST IN

as per sir @loomdart ‘s request, this thread is abt the on-going sells off made by PLUS Token, the biggest Chinese PONZI which scammed ~70K $BTC + ~ 800K $ETH

I mentioned it briefly in my last Coindesk oped but worth additional attention as it may cause further sells pic.twitter.com/uIjgrzwHET

— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) August 14, 2019

It still remains unclear why Ethereum dumped 10% overnight – and if this massive mount contributed to yesterday’s drop. However, a panic sell-off could be triggered very soon, perpetuated by any movement in the scammer’s wallets.