As Ethereum fell to around $2,200 for two consecutive days this week, a whale that had leveraged loans to increase its ETH position was forced to sell its Ethereum to repay its debt and avoid liquidation. It incurred a realized loss of up to $2.02 million, and its undefeated myth since November last year may be shattered.
(Bitcoin “plunges to $39,430,” hitting a new low for the year, Ethereum falls below $2,300, and long positions are liquidated by over $200 million.)
(Crypto Market Morning News: Bitcoin fluctuates between $41,500 in long and short positions, Ethereum struggles to break through $2,500.)
After the brief spike caused by the approval of Bitcoin spot ETFs, the cryptocurrency market has been steadily declining. The expectation of an Ethereum spot ETF this year had driven ETH’s price to a high of $2,717 on December 12th, but it has since dropped nearly 20% in less than two weeks.
ETH Chart | Source: Binance Spot
The continuous decline in Ethereum has also resulted in significant losses for bullish investors. According to Twitter user ai_9684xtpa, the Ethereum whale that had maintained a 100% win rate since November last year accumulated 20,841 ETH with an average cost of $2,380 and a total value of approximately $50.54 million by borrowing stablecoin DAI through MakerDAO and using it to buy ETH. However, as the price of ETH fell, the whale faced liquidation risk on MakerDAO, forcing it to sell 12,715 ETH (approximately $28.25 million) yesterday evening at around 6:30 PM to repay the loan, resulting in a loss of $2.02 million. Its 100% win rate has been broken.
It is understood that the whale currently still holds 7,001 ETH. Although the health indicator of its assets on MakerDAO has slightly recovered, if ETH continues to decline or remains at a low level of volatility, the whale’s losses may continue to expand.
10:40 AM Update: The remaining 7,000 ETH has been sold in full.
The latest information indicates that the remaining 7,000 ETH of the whale has been sold, resulting in a cumulative loss of $3.17 million.
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