In the last few hours, the market has experienced a flash crash. Within a couple of minutes, the market has wiped out a couple of billions. The drop has seen nearly all cryptocurrencies turn red as well as drop below key supports.
One of the highest losers is Ethereum. The asset was enjoying moderate gains which began yesterday and had climbed as high as $225 earlier in the day. The more than 5% drop being recorded by the coin at the time of press has now seen the coin drop to around $205.
Ethereum will now be looking to find support above $200 or risk greater losses below this position.
Bitcoin, which seemed to trigger the drop, lost nearly $700 in a couple of minutes. Earlier in the day, the crypto king was trading in the highs of $10,150. The crash has seen the asset drop to trade below $9,500 at the time of writing this.
The $9,500 position has been a key support for the coin and holders will be hoping that it holds above it. Further losses would see the next key support in the $9,200 region which has been tested in the last few weeks.
XRP Shows Relative Stability
XRP has had great stability over the year and once again it has proven so. While most coins have suffered a more than 3% drop, XRP is down by 2%. This has seen the coin drop from highs of $0.32 earlier in the day to $0.31.
Cryptocurrencies which have recorded the highest loses include Litecoin, Bitcoin SV, EOS, and Cardano which have lost more than 5%.
Given the drops have come in a couple of minutes, there must be a root reason that triggered the sell-off. This remains unclear at the time of writing this. In the next couple of hours, the losses might extend as panic spreads around the market and as the reason for the crash becomes clear.
However, in the days to come, this is expected to be followed by a correction upwards. For Bitcoin, we should see prices climb back above or near $10K as $9,800 remains a key resistance for the asset. Ethereum, on the other hand, will need to climb back above $220.