As of 9:00 a.m. today (Wednesday, June 28, 2017), the Ethereum price has dropped 15.21% since last Wednesday (June 21).
The biggest reason for the price drop is the diminished investor confidence that's resulted from the June 21, 2017, Ethereum "flash crash." That event sent cryptocurrency owners into a full-fledged panic and has put selling pressure on Ethereum for the past week.
On the GDAX, an exchange that allows investors to buy and sell digital cryptocurrencies, the Ethereum price crashed from $319 to a low of just $0.10.
The crash, which reportedly took place in a matter of seconds, was caused by a multimillion-dollar sell order that triggered 800 additional stop-loss orders.
Trending: Why Ethereum Prices Could Reach $500
Stop-loss orders are used to limit losses when a stock or commodity price falls. They're also used for investors to lock in a certain profit they've made.
However, those stop-loss orders caused chaos on June 21, 2017...
Why Stop Losses Triggered an Ethereum Price Panic
It's unclear why this particular cryptocurrency investor was trying to sell millions of dollars' worth of Ethereum.
But it triggered some stop-loss orders between $317.81 and $224.48 to fill. The Ethereum price continued to fall and crashed to a low of $0.10. According to Fortune, all of this took place in a matter of seconds.
The crash from $317.81 to $0.10 seems irrational, but the trading algorithms for GDX sold Ethereum at designated stop-loss prices as long as there were buyers to match the orders.
Shortly after the event, GDAX Vice President Adam White wrote in a June 21 blog post that there were no indications of wrongdoing.
Must Read: How to Buy Bitcoins- Your Guide to Digital Profits
"Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk," White said in his blog post.
Still, this has caused some investors to lose confidence in the cryptocurrency. But what Money Morning readers need to remember is Ethereum prices are still near all-time highs.
Over the last year, Ethereum prices have skyrocketed 1,784.87%.
And despite the short-term sell-off, prices could continue to climb and reach $500 by the end of 2017.
Here's everything you need to know about this bold Ethereum price prediction.
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