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Crypto Traders Might Want to Track Ether ‘Slippage’ Indicator. Here’s Why
(geralt/Pixabay)
In both cases, the price moves faster than the time it takes for the order to fill either because of the volatility or the lack of supply, and can work in favor of or against traders. For instance, if a purchase order is executed at a price higher than the quoted price, it’s the case of high (or unfavorable) slippage.
A spike in slippage in the ether market has historically presaged trend changes, data provided by Crypto research firm Hyblock Capital show.
Slippage tends to spike at turning points in the market. (Hyblock) (Hyblock)
The chart shows ether’s USDT-denominated price and aggregated maximum slippage – the highest daily slippage on a single market order. The aggregated max slippage includes data from crypto exchanges Binance, BitMEX, Bybit, Bitfinex, Deribit, Huobi, OKX, Phemex, and quarterly futures listed on Huobi and OKX.
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Ether’s late 2021 bull market peak and the December 2022 bear market bottom coincided with a sudden and notable increase in slippage. Similar spikes in slippage have marked interim tops and bottoms this year.
Edited by Sheldon Reback.
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