Large Ethereum Whale on Verge of Liquidation as ETH Bloodbath Deepens

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As a researcher with a background in cryptocurrency and blockchain analysis, I find the current market situation intriguing. The recent tweet from @lookonchain about an Ethereum (ETH) whale on the verge of liquidation is a significant data point. According to the information provided, this trader deposited a large amount of ETH as collateral and borrowed stablecoins, which could lead to a potential loss of over $30 million if the price of Ethereum continues to decline.

Expert: A notable figure at Lookonchain analytics platform, represented by the handle @lookonchain, has recently shared information about a significant Ethereum (ETH) investor. This individual currently holds a large position in ETH and is reportedly close to experiencing margin calls, potentially resulting in the loss of over $30 million in cryptocurrency that was borrowed.

Ethereum (ETH) whale on verge of liquidation

Based on the information from the data source, this particular whale transferred 12,374 ETH, equivalent to around $30.5 million at current Ethereum prices, to Compound. Simultaneously, they obtained approximately $31.4 million in stablecoins through borrowing. According to Lookonchain’s analysis, if the Ethereum price drops below $2,984, this whale’s long positions will be liquidated.

As a crypto investor holding long on Ethereum (ETH), I’m closely monitoring the market as it takes a downturn. I had deposited 12,734 ETH, equivalent to around $40 million, into Compound and borrowed an amount of stablecoins totalling $31.4 million at a rather low health rate of just 1.06%. Should the price of Ethereum fall below $2,984 per coin, my position will be liquidated. Here’s the address for reference: [Insert the wallet address here].— Lookonchain (@lookonchain) July 4, 2024

As an analyst, I’ve uncovered some intriguing information regarding a recent whale transaction. Earlier today, a new wallet acquired approximately 9,425 ETH, equivalent to around $30 million at current rates. Notably, this is a substantial addition to their holdings.

In the aggregate, this entity purchased and sold a staggering $120 million in altcoins on the leading cryptocurrency exchange, Binance. Among these transactions, the purchase of Ethereum represented the largest amount.

Bitcoin price deep in red, Ethereum follows suit

Over the past few days, beginning on Monday, Ethereum, the second largest meme cryptocurrency, has experienced a significant drop. The price has fallen by approximately 10.42%, causing it to move down from the $3,500 region to its current level at $3,150.

Today, Ethereum experienced a significant 3.03% decrease in just one hourly candlestick. Subsequently, there was a minor uptick, only for the price to fall further by an additional 3.09%.

As a crypto investor, I’ve noticed Ethereum mirroring the recent downturn in Bitcoin’s price. Bitcoin has been taking heavy hits since Monday, with analyst Charles Edwards reporting in a tweet that large players are offloading their Bitcoin holdings. The majority of these sellers are miners, who are unloading both their freshly minted BTC and their previously held reserves.

Long-term investors are also disposing of their Bitcoins in large quantities. Based on Glassnode’s data presented by Edwards, there is currently a net outflow of 374,000 Bitcoin or approximately $24 billion worth of Bitcoin being sold on the market at present.

According to U.Today’s previous reports, both the U.S. and German administrations have recently disposed of substantial quantities of Bitcoin and Ethereum.

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2024-07-04 17:29