Ethereum whales face liquidation risks as ETH falls below $2,000

• Ethereum whales are moving assets to cover lending positions as ETH volatility increases, with major safes facing the threat of liquidation.
• One whale reduced liquidation risk with deposits above 30,098 ETH, lowering the liquidation price to $1,127, ensuring excessive collateralization.
• The short positions accumulated at $2,000 and $2,200 suggest potential gatherings as liquidity changes to attack these positions in the derivatives market.

Ethereum (ETH) is under intense sales pressure, falling below $2,000, causing large owner liquidation risks. Some whales are forced to move their assets to decentralized lending protocols to cover their positions. The recent price decline has led to ETH falling to $1,791.23, liquidating multiple positions and putting additional collateral at risk.

As whales struggle to maintain collateral, the Decentralized Financial (DEFI) lending platform has witnessed a growing liquidation activity. After ETH fell below $1,800, one whale was liquidated, causing a total debt of $2.27 million in DAI. The collateral worth $1.23 million was absorbed into the liquidation protocol, increasing reserves while borrowers held the DAI issued from the loan.

As ETH volatility increases, a large risky position

A further 6.4% decrease in ETH is at risk of liquidation. Despite 182% being collateral, safes face pressure installation due to market fluctuations. Another major safe, holding 75 million DAIs, faces liquidation at $1,798.83, where 60,000 ETH is at risk, with a risky 5.9% drop in ETH.

Some whales are actively dealing with DIP by purchasing ETH and adding collateral. One entity spent $30 million in DAI to buy ETH for $2,014, but the position remains underwater. He also reactivated his dormant account to post additional collateral, avoiding a $1,836 liquidation per ETH. A slightly higher priced Maker’s Oracle offers some protection against cascade liquidation.

Rumors suspected of liquidation of the Ethereum Foundation have been exposed

Speculation has arisen that the Ethereum Foundation is among whales facing liquidation. However, Ethereum developer Eric Connor dismissed these claims, confirming that there was no evidence linking the affected foundation to the foundation. The organization previously had $120 million worth of ETH deposited with Aave, Compound and Maker for Defi operations.

One whale successfully reduced liquidation risk by adding 30,098 ETH, over $56 million. The move reduced the liquidation price to $1,127, securing a position against an immediate threat. Currently, Vault has 100,394 ETH as collateral, carrying $78 million borrowed DAIs, and an additional 53 million DAIs can be used to build them.

Ethereum’s open profit remains restrained by $9.22 billion over 24 hours, indicating careful trading behavior. Bibit leads the liquidation, with over 83% of short positions being affected. The accumulation of liquidity at short positions of $2,000 and $2,200 suggests a potential gathering as traders try to liquidate these positions.