Ethereum

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
According to <a href="https://twitter.com/lookonchain/status/1740769184227922305" rel="noopener noreferrer nofollow">Lookonchain</a>, an Ethereum whale has recently made a huge purchase of 25,674 ETH; however, this action could backfire if the price of ETH falls below a specific threshold, triggering a liquidation event.
From all indications, it appears that the whale obtained the said ETH from MakerDAO. This decentralized lending platform allows users to mint stablecoins (DAI) by locking up their crypto assets as collateral.
<blockquote>
 When the price of <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a> drops to $2,257, the smart money will be in danger of liquidation.The healthy ratio on <a href="https://twitter.com/hashtag/Maker?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Maker</a> is as low as 1.03.The smart money once again spent 61M <a href="https://twitter.com/search?q=%24DAI&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$DAI</a> to buy 25,674 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a>, and then sold 5,851 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a> for 14M <a href="https://twitter.com/search?q=%24DAI&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$DAI</a>, making ~$99K.<a href="https://t.co/yGkFI6qpnj" rel="noopener noreferrer nofollow">https://t.co/yGkFI6qpnj</a> <a href="https://t.co/VRmstUCngE" rel="noopener noreferrer nofollow">pic.twitter.com/VRmstUCngE</a>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1740769184227922305?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 29, 2023</a>
</blockquote>
Lookonchain reports that the whale had spent 61 million DAI to buy 25,674 ETH; however, the <a href="https://u.today/dormant-ethereum-whale-continues-to-sell-eth-holdings-details" rel="noopener noreferrer nofollow">whale</a> shortly after sold 5,851 ETH out of this stash for a value of 14 million DAI, of which they made a profit of $99,000.
Although the whale had made some profits from this strategy, they also faced the risk of liquidation. If the ETH price goes below a certain level, the whale's collateral will be insufficient to cover their debt, and MakerDAO will automatically liquidate the ETH to reclaim the DAI.
According to Lookonchain, if the <a href="https://twitter.com/lookonchain/status/1740769184227922305" rel="noopener noreferrer nofollow">price of ETH</a> drops to $2,257, the said large ETH holder might be in danger of liquidation. This is because the healthy ratio on MakerDAO is presently as low as 1.03.
The Ethereum price is nearing this threshold, having fallen 3.56% in the last 24 hours to trade at $2,280, according to <a href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">CoinMarketCap</a> data. Since reaching a high of $2,448 on Dec. 28, the price of Ethereum has steadily dropped.
If today closes in red, ETH might be set to mark its third consecutive day of <a href="https://u.today/massive-ethereum-whale-with-4890-eth-suffers-losses-after-error-moves" rel="noopener noreferrer nofollow">losses</a>. The ETH price fell to intraday lows of $2,255 on Dec. 29, but at present, it has held up above the lows of $2,267 marked in today's trading session.
Wherever ETH price trends, the whale's fate is now related to the performance of ETH and the crypto market as a whole, which is currently declining as investors book profits through the end of 2023.

How Ethereum Whale Risks Liquidation After Buying 25,674 ETH: Details

U_Today

Other articles published on Dec 30, 2023

$150M+ Crypto Tokens Set to Flood Market in First Week of New Year

XRP Surges 5% on Christmas Boost: New User Spike Sparks Optimism

Michael Cohen admits to using AI to provide false legal citations

2nd Report Of December 2023

Bitcoin Price Prediction Amid $42,000 Dip: BlackRock, VanEck ETF Moves & JPMorgan CEO’s Stance

Which Altcoin Will Hit $1 in January 2024: Cardano (ADA) or Ripple (XRP)?

Join our free newsletter for daily crypto updates!