![](https://lasvegastoppicks.com/wp-content/uploads/2024/05/DALL·E-2024-05-23-16.29.51-An-illustration-of-Ethereums-price-chart-showing-a-sharp-drop-with-elements-representing-market-manipulation-such-as-a-large-sell-off-transaction-de-500x500.webp)
Ethereum Price Plunge Linked to MEV Manipulation: Report
Ethereum (ETH) experienced a significant price drop of nearly 5% within an hour this Thursday, amid high anticipation for the approval of spot Ethereum exchange-traded funds (ETFs) in the US. The sudden crash has been attributed to market manipulation by the trading firm Symbolic Capital Partners, according to a report by a user identified as ai_9684xtpa on Twitter.
Details of the Manipulation
The user explained that Symbolic Capital Partners executed a massive sell-off, unloading 6,968 ETH in one minute at 20:56, totaling $27.38 million at an average price of $3,930 per ETH. This included a single transaction of 3,497 ETH, with an additional bribe cost of 90 ETH, indicating a rush to liquidate at a higher price and trigger a market downturn, possibly to repurchase ETH at a lower price later.
Such activities are known as MEV, or “maximal extractable value,” which involves exploiting on-chain resources for profit. The substantial bribe payment suggests a deliberate strategy to crash the price for future gain.
Market Reaction
Following this transaction, Ethereum’s price fluctuated around the $3,800 level and was recorded at $3,803.37 at the time of writing. This marks a significant drop, nearly 22% below its previous all-time high.
Spot Ethereum ETFs Anticipation
Despite the price turbulence, optimism surrounds the approval of spot Ethereum ETFs. Bloomberg ETF analyst James Seyffart shared that the approval is anticipated to happen this Thursday. Initially, the odds for approval seemed low, but Seyffart and fellow Bloomberg analyst Eric Balchunas increased the chances to 75% after the SEC began contacting issuers.
Since this development, various asset management firms have updated their 19b-4 filings, and VanEck’s Ethereum spot ETF has been listed on DTCC under the ticker $ETHV. The first final deadline for the SEC’s decision on VanEck’s application is today, with expectations that the SEC might announce their decision by 4 pm EST. A positive outcome is anticipated, although immediate trading permission is not guaranteed.
Conclusion
The Ethereum price drop highlights the impact of market manipulation, specifically through MEV strategies, on cryptocurrency prices. As the market awaits the SEC’s decision on spot Ethereum ETFs, the trading community remains optimistic about the potential positive effects on Ethereum’s market stability and growth.
Disclaimer
The information in this article is based on the latest available details at the time of publication. Market conditions and regulatory outcomes are subject to change based on real-time events and announcements. For the most current updates, refer to official sources and reports.