Ether Position Worth $126 Million Nears Liquidation Amid Market Plunge
An ether (ETH) position valued over $126 million nearly faced liquidation during a market decline. ETH has dropped 22% in 48 hours, currently trading at $2,080, erasing Sunday's gains.
A rebound at $2,000 prevented further liquidations on MakerDAO, where three positions worth a total of $349 million are at risk:
- $1,929
- $1,844
- $1,796
Liquidation on MakerDAO results in the sale or auction of ETH collateral, often at discounted rates, which may lead to additional price drops. Liquidations in DeFi affect spot assets directly, unlike futures, resulting in higher volatility and potential cascading effects.
Currently, $1.3 billion in ether is liquidatable, with $427 million within 20% of the current price. ETH's performance against bitcoin (BTC) has declined, currently at a ratio of 0.0235 compared to previous highs of 0.156 and 0.088, influenced by institutional interest in BTC ETFs and competition from other blockchains like Solana and Base.
