Ethereum (ETH) Navigates Turbulent Waters as Whales Sell and Liquidations Loom

Ethereum (ETH), one of the most prominent cryptocurrencies, is currently facing a challenging period.

Cryptocurrency behemoth Ethereum (ETH) is presently grappling with a formidable challenge as it slides deeper into bear territory.

The post Whales Move 6,131 ETH As Two Major ETH Positions Face Imminent Liquidation - Price Remains Under $1,800 appeared first on CryptoSignals.com.

The renowned cryptocurrency intelligence firm, Lookonchain, has shed light on a substantial transfer of 6,131 ETH, valued at roughly $10.94 million, by a cryptocurrency whale. The funds were moved from an unknown wallet into a Binance exchange wallet.

This development comes amid reports of two substantial positions, totaling 125,603 ETH and currently valued at around $229 million, being at risk of liquidation.

These positions, held by two whales on the Maker platform, would face forced liquidation if ETH drops to $1,787.75 and $1,701.54, respectively.

Moreover, two other smaller positions, amounting to 250 ETH and valued at $443,116, are also at risk of liquidation at an average price of $1,772.64.

In a recent analysis by AMBCrypto, it was noted that if these positions are liquidated, it could spark a significant demand squeeze, driving ETH’s price even lower.

With the threat of liquidation looming, traders might become more inclined to open short positions in ETH derivatives, while those holding ETH in the spot market might be forced to sell to avoid getting caught in a downward spiral. This chain reaction could create a situation where selling pressure overwhelms the market, pushing ETH into a deeper decline.

In other developments, recent data from IntoTheBlock highlights the significant activity of large traders, categorized as those who trade between 0.1% and 1% of the total supply of ETH.

Over the past 24 hours, these traders have transacted an enormous sum of $1.87 billion in ETH. The analysis of these trades indicates that a majority of these large traders were engaged in selling their positions, which aligns with ETH’s price movement as it slid by 1.85% during the same period.

Further analysis by AMBCrypto, using data from OpenSea and Atomic , shows that the volume of ETH transactions on decentralized exchanges (DEXs) over the past 24 hours was relatively low, remaining at low levels despite the recent price drop.

This pattern is usually observed when the price of an asset declines rapidly, leading to reduced trading activity.

Despite attempts to rally, ETH encountered strong resistance at key price levels, according to IOMAP from crypto analytics firm Glassnode.

A closer look at the chart reveals a substantial cluster of sell orders at the price levels of $1,857.97 to $1,963.02. At these price bands, there is a pending volume of 7.89 million ETH from 5.82 million addresses.

However, if the price of ETH manages to rise above the $1,963.02 to $2,068.08 range, it would encounter less selling pressure, with only 2 million ETH in realized profit at prices between $1,963.02 and $2,068.08.

At prices above $2,068.08, the selling pressure would be even lighter, with only 1 million ETH in realized profit at prices between $2,068.08 and $2,172.03.

At present, the majority of ETH investors are still in the red, especially those who purchased ETH at its all-time high of $4,811 in November 2021.

According to Glassnode's data, the Price to Holder's Net Unpaid Cost, which measures the average price at which investors bought ETH, stands at around $1,466. This indicates that a large portion of ETH holders would require the price to rise substantially for them to break even or realize a profit.