A significant Ethereum whale is on the brink of liquidation due to the ongoing decline in ETH prices. This whale has deposited 12,374 ETH to Compound and borrowed $31.4 million in stablecoins. If Ethereum’s price drops to $2,984, the whale’s long positions will be liquidated. Currently, Ethereum is trading at $3,124, down from the $3,500
The post Ethereum Whale Faces Liquidation, ETH Price Nosedive appeared first on CoinGape.
A significant Ethereum whale is on the brink of liquidation due to the ongoing decline in ETH prices. This whale has deposited 12,374 ETH to Compound and borrowed $31.4 million in stablecoins. If Ethereum’s price drops to $2,984, the whale’s long positions will be liquidated.
Currently, Ethereum is trading at $3,124, down from the $3,500 zone earlier this week. This 10.42% decline since Monday has intensified concerns about the whale’s potential liquidation. The situation worsened today with a 3.03% drop, followed by a marginal rise and another 3.09% decline.
Ethereum and Bitcoin Prices Drop Sharply
The crypto market is seeing significant activity among large holders amid this price downturn. Another whale recently acquired 9,425 ETH worth over $30 million from Binance. This fresh wallet also purchased a variety of other cryptocurrencies, totaling $120 million in altcoins.
As the market declines, the whale who is long $ETH is on the verge of liquidation!
He deposited 12,734 $ETH($40M) to #Compound and borrowed $31.4M stablecoins, with a health rate of only 1.06.
When the price of $ETH drops to $2,984, he will be liquidated.
Address:… pic.twitter.com/lP9877HjCJ
— Lookonchain (@lookonchain) July 4, 2024
This large acquisition includes BNB, MATIC, LINK, AVAX, and top meme coins like Shiba Inu, Dogecoin, Pepe Coin, and Floki. The ETH purchase was the largest among these transactions. These moves are drawing attention as they occur during substantial market volatility.
Ethereum’s price drop is closely following Bitcoin’s recent decline. Bitcoin has been falling sharply since Monday, driven by sales from major players and miners. Analyst Charles Edwards noted that long-term Bitcoin holders are actively selling their BTC.
Glassnode data shared by Edwards indicates a 374,000 Bitcoin negative flow. This translates to approximately $24 billion worth of Bitcoin being dumped on the market. Additionally, the U.S. and German governments have recently sold significant amounts of Bitcoin and Ethereum.
Also Read: Dogecoin Whale Bags 90M Tokens Amid Market Crash, What’s Next For DOGE?
ETH Price Drop Could Trigger Liquidations
The potential liquidation of a giant Ethereum whale could have broader market implications. If Ethereum’s price falls to the critical $2,984 level, it may trigger further sell-offs. This could exacerbate the current downtrend and lead to more liquidations.
The ongoing selling pressure from Bitcoin is also affecting the overall market sentiment. As major holders and governments offload their assets, it creates additional downward pressure. Investors are closely watching these developments to gauge the market’s next moves.
Market analysts are providing varied perspectives on the situation. Some believe the whale’s liquidation risk underscores the fragility of highly leveraged positions. They argue that such scenarios highlight the importance of risk management in volatile markets.
Others are focusing on the broader market dynamics at play. They point to the influence of Bitcoin’s performance on Ethereum and other cryptocurrencies. As Bitcoin faces significant sell-offs, it drags down the entire market, including Ethereum.
Also Read: US Government Shifts $14M Bitcoin Amid $BTC Dip, New Selloff Incoming
The post Ethereum Whale Faces Liquidation, ETH Price Nosedive appeared first on CoinGape.
