Ethereum price crashes 10% lower as Coinbase reports system outage

Ethereum price crashes 10% lower as Coinbase reports system outage
Written by:
Michael Harris
10th May, 15:59
Updated: 10th May, 16:00
  • Ethereum brakes below $200 to hit $180 for the first time in two weeks
  • Bitcoin, as well as the rest of the crypto market, crashed 10% as well
  • The major crypto exchange Coinbase experiences partial outage at around the same time
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Ethereum (ETH/USD) price has crashed 10% today below the $190 mark on the back of the extended selling across the crypto market. Similarly, Bitcoin (BTC/USD) is trading around 9% lower after dropping overnight from $9,500 to $8,100 in just 30 mins.

Fundamental analysis: Crypto flash crash

Ethereum, as well as Bitcoin and other top digital coins, quickly lost 10% overnight. No fundamental factors were mentioned as the reason behind this move lower.

Coinbase, one of the world’s largest crypto exchanges, said on its status page that the website, mobile app, and API website experienced partial outages around 01:26 British time on Sunday. 

This brief outage took place around the same time when the entire market attracted huge selling pressure that has seen Bitcoin lose $1,400 in just 30 mins. Around 40 mins later, Coinbase’s services were back online.

This is not the first time that Coinbase’s services went offline during the times of the increased volatility. The same incident occurred last week when Bitcoin gained around 15% to trade around the $9,000 handle.

Separately, the hedge manager Mike Novogratz was hyping up Ethereum while speaking on a panel at the Ethereal Virtual Summit, arguing that the second biggest digital coin in the world should be valued in the same manner as the Wall Street values companies such as Facebook.

“One of the things for the Ethereum narrative is valuing the network kind of like we do with Facebook — the more network effects you get, [the better]. Like getting Tether to migrate its coins to Ethereum brings people using that to the network,” said Novogratz. 

“All the other cryptos — of which Ethereum is the most important — need over time to provide real use cases. [… Then, their value] will be store of value plus something”.

Technical analysis: Ethereum hits a 2-week low

Last night’s push lower forced Ethereum to break below the $200 handle and hit $180 for the first time in two weeks. This move came in a quite delicate moment for Ethereum as the digital coin had been trading within an ascending channel. 

Ethereum daily chart (TradingView)

The price action pulled back all the way to the horizontal support at $180, before bouncing back to the region of $190. The sellers are now fighting to force a daily close below the 100-DMA at $191, which would invite more selling pressure on Ethereum.

The third layer of support is located around $175, where the 200-DMA is located. In case the bearish momentum fades, this level offers a solid opportunity to buy Ethereum, hoping for a retest of the broken channel above $200.

Summary

Ethereum joined the rest of the crypto market in crashing around 10% lower around 01:30 BST on Sunday, creating problems for the major crypto exchange Coinbase, whose services went offline at around the same time. 

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