Ethereum whale wallets at risk of large-scale liquidation amid ETH price decline
A recent analysis by on-chain expert EmberCN revealed that a sharp decline in Ethereum (ETH) prices triggered a significant wave of liquidations among leveraged ETH whales. These whales were compelled to sell off their ETH holdings to cover their loans, resulting in substantial liquidations. For instance, one address starting with “0x111” liquidated 6,559 ETH to repay a 277.9 WBTC loan, while another starting with “0x419” liquidated 2,965 ETH to settle a 7.2 million USDT loan. Similarly, addresses beginning with “0x790” and “0x5de” liquidated significant amounts of ETH to cover their loans.
The market turmoil extended beyond Ethereum, with Bitcoin (BTC) experiencing a 12% decline to $53,000, and ETH plummeting over 20% in the last 24 hours. This downward trend erased the gains ETH had made earlier in the year. The market correction began on Friday, possibly influenced by disappointing employment data and geopolitical tensions, leading to Bitcoin dropping below $60,000 on Saturday.
The bearish sentiment prevailing in the market also impacted altcoins, with ETH witnessing a drastic drop from around $3,300 to $2,300 in just a week, marking a substantial decline of over 30%. CoinGecko’s data reflects this downturn. Factors exacerbating the situation include heightened liquidation pressure and rumors of substantial ETH sales by Jump Trading.
The collective effect of these events resulted in a staggering $100 million in liquidations within a single hour, with the total liquidations over a 24-hour period exceeding $445 million. This massive liquidation event underscores the volatility and risks associated with leveraged trading in the crypto market.
