Summary
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Whale Liquidation Threat: Two significant Ethereum holders (“whales”) on Maker DAO are facing imminent liquidation of a combined 125,603 ETH (approximately $238 million) due to recent Ethereum price declines approaching their liquidation thresholds.
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Vulnerability Highlighted by Analytics: Blockchain data from Lookonchain pinpoints specific liquidation price points for these whales, with one particularly close to forced liquidation as ETH hovers just above its critical level.
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Multiple Market Pressures on ETH Price: Ethereum’s price drop, increasing liquidation risk, is attributed to broader market turbulence including inflation concerns, weak US economic data, tariff announcements, lagging performance of Ethereum ETFs, and large ETH sell-offs by hackers.
Significant fluctuations in the value of Ethereum (ETH) are placing substantial cryptocurrency holders, known as “whales,” at risk of having their assets automatically liquidated. Specifically, on the decentralized finance (DeFi) platform Maker DAO, two prominent entities are facing potential forced selling of their Ethereum holdings due to recent price declines.
Collectively, these two whales have deposited a massive 125,603 ETH into the Maker protocol. Should Ethereum’s price drop below critical thresholds, this entire sum, currently valued at approximately $238 million, could be forcibly liquidated to cover their debts.
Data from Lookonchain, a blockchain analytics firm, reveals that one whale, controlling approximately 64,793 ETH, is particularly vulnerable. Their liquidation price point is precariously close at $1,787 per ETH.
With Ethereum currently trading around $1,841 at the time of this report, this whale is just a mere $54 away from triggering an automatic liquidation event.
This particular trader previously navigated a close call on March 11, when a sudden Ethereum price plunge nearly resulted in liquidation.
They managed to avert this outcome by making a partial debt repayment.
The current market downturn has once again jeopardized their position, with their “health rate” indicator of their position’s safety—now barely above the critical threshold at 1.04. Any further dips in Ethereum’s price could initiate an automatic liquidation process.
A second whale also finds themselves in a precarious situation. They deposited a substantial 60,810 ETH as collateral and borrowed 75.69 million DAI, a stablecoin.
Their liquidation threshold is set at $1,805 per ETH. If Ethereum’s price falls beneath this level, its large ETH position is also at risk of automatic liquidation.
Broader Market Pressures Exacerbate Ethereum’s Price Decline
Ethereum’s recent drop below the $1,900 mark, representing a 6% decrease over the last week, is occurring amidst broader market instability and several negative factors weighing on crypto prices.
Investor apprehension regarding rising inflation and underwhelming economic data from the United States has led to a widespread reduction in exposure to higher-risk investments, including cryptocurrencies.
Adding to the market unease, President Trump‘s announcement of impending reciprocal tariffs, scheduled to take effect on April 2nd, has further amplified market uncertainty.
Bitcoin (BTC), the leading cryptocurrency, also experienced volatility, briefly dipping below $82,000 in early trading on Saturday before partially recovering to around $82,800.
Currently, Bitcoin is trading near $82,400, showing nearly a 2% decline over the past week, according to data from TradingView. B
itcoin’s overall pullback is contributing to downward pressure on alternative cryptocurrencies, including Ethereum.
The performance of US-based spot Ethereum exchange-traded funds (ETFs) also remains lackluster.
Data compiled by Farside Investors indicates that these ETFs experienced net outflows exceeding $400 million between March 5th and March 27th.
Although this trend briefly reversed yesterday with a collective inflow of approximately $5 million, overall investor enthusiasm for these products remains subdued.
There is some optimism that the potential introduction of staking features for these ETFs could revitalize demand, and several ETF managers are currently seeking SEC approval to incorporate staking into their offerings.
Adding to the selling pressure on Ethereum, a recent large-scale sell-off by hackers is also impacting the price.
Early reports from Lookonchain indicate that hackers have recently moved and sold 14,064 ETH, originating from the exploits of THORChain and Chainflip, further contributing to the downward pressure on Ethereum’s price.
Also Read: ZachXBT Notices a $238M Bitcoin Transfer from a Possible Accused Person
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