Liquidation Scare: Ether Whale Avoids $117M Loss
Ethereum watchers are keeping a close eye on two massive crypto ‘whale’ accounts. These positions teetered on the edge of liquidation yesterday, with a hefty $229 million in combined collateral hanging in the balance.
After another tough weekend that saw Ether’s value drop by roughly 10%, the liquidation of such enormous amounts could have pushed the token’s price down even further into the red.
Ether had already been struggling, hitting a four-year low against Bitcoin at the end of last week. Since then, it’s continued its slide, even dipping further to a new five-year low against the top crypto.
Read more: ETH crashes to four-year low against BTC
Of the two at-risk positions, the slightly smaller one, holding 63,000 ETH (valued at $114 million), saw active management over the weekend. The account holder added 2,600 ETH in collateral and paid down some debt, successfully lowering its liquidation price to $1702.
However, it was the larger position that really had crypto traders on edge. This account, with 65,000 ETH worth $117 million, hadn’t been touched for three weeks.
Concerns mounted that the owner might not even realize just how close their massive $117M collateral stash was to being liquidated. Panic started to set in as Sky’s oracle price was updated to $1784 – a hair’s breadth of just $5 away from this position’s liquidation point.
Then, with what felt like the last few minutes possible, the user finally stepped in. They repaid $1.6 million in borrowed DAI tokens, bringing their liquidation price down to $1745. Crisis averted… for now.
Amidst the shaky market sentiment, leveraged Ether positions on Sky (formerly Maker) have decreased by 10% in the past 24 hours. This is according to DeFiLlama’s liquidation tracker, which monitors on-chain leveraged positions and their critical liquidation levels.
Got a tip? Send us an email securely via Protos Leaks. For more informed news, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.
