Ethereum price crash attributed to MEV manipulation: Report

Ethereum (ETH) faced a nearly 5% crash in one hour this Thursday, despite the anticipation around the approval of spot Ethereum exchange-traded funds (ETFs) in the US. The X user identified as ai_9684xtpa pointed out that this was likely a market manipulation movement by the trading firm Symbolic Capital Partners.

“The agency sold 6,968 ETH in one minute at 20:56, worth $27.38 million, with an average selling price of $3,930; one transaction sold 3,497 ETH on the chain at one time, and the bribe cost was as high as 90 ETH,” explained ai_9684xtpa.

Such transactions are known as MEV, short for “maximal extractable value,” which consists of using on-chain resources to profit. The payment of 90 ETH suggests a hurry to sell the position at a higher price to make it crash, possibly to buy it again at a lower price.

ETH price fluctuation after Symbolic’s transaction. Image: CoinGecko

Since the crash, Ethereum has ranged in and out of the $3,800 price level and is priced at $3,803.37 at the time of writing, nearly 22% away from its previous all-time high.

“It’s happening”

As shared by Bloomberg ETF analyst James Seyffart, an approval of spot Ethereum ETFs is happening this Thursday. Despite the low odds given to this scenario until last Monday, Seyffart and his fellow Bloomberg analyst Eric Balchunas boosted the chances to 75% after the SEC started contacting the issuers.

Since then, various asset management firms presented amends to their 19b-4 filings, and VanEck’s Ethereum spot ETF even got listed on DTCC under the ticker $ETHV. The first final deadline is today, as the US regulator must decide on VanEck’s application.

Moreover, according to Balchunas, the SEC’s decision on spot Ethereum ETFs might come at 4 pm (EST). Although a positive outcome is expected, it doesn’t mean immediate permission for trading.