Ethereum Price Plunge Sparks Debate Over Whale Manipulation

On February 4, Ethereum's price experienced extreme fluctuations, triggering intense discussions within the crypto community.

The price of ETH plunged from nearly $2,900 to a low of $2,120, only to swiftly recover by the end of the day. This sharp drop raised questions about market manipulation, with many speculating that large investors, known as “whales,” played a role in orchestrating the decline.

While external factors like the US trade war and tariffs seemed to have added to the market volatility, the recovery came quickly as global markets, including cryptocurrencies, bounced back. Despite the initial panic, Ethereum closed the day with a remarkable 26% rebound.

In response to the chaos, Ethereum co-founder Joseph Lubin explained that such price swings were common in crypto markets.

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He suggested that large investors were capitalizing on economic uncertainty, using it as an opportunity to pressure weaker traders into selling their positions, only to later buy back when prices settled.

Other crypto figures, including Hsaka, emphasized that the decline was likely not driven by organic market sentiment but rather by whales manipulating the price with calculated sell orders.

Alexander Zdravkov