The Ethereum (ETH) price is under stress as it anticipates a significant selloff near $1016. It is presently trading at $1,114.21, and has recorded a drop of 4.26% in the last 24hrs.
Three Arrows Capital liquidating positions will prompt the big selloff when key lenders dump holdings. For example, if the ETH price goes down to $1016, the wallet address Three Arrows Capital on Nansen has a $264 million liquidation risk. It is currently working to repay the AAVE loan.
The address repays the loan with USDT and USDC and withdraws ETH. Following that, Three Arrows Capital transfers ETH to USDT or USDC via “sinofate.eth” and pays off the loan on Aave V2. Additionally, in the previous 24 hours, the wallet has sold approximately 50,000 ETH.
Crucial Levels To Watchout For Bitcoin And Ethereum
Meanwhile, BitMex co-founder Arthur Hayes states that a further drop in Bitcoin (BTC) and Ethereum (ETH) prices below their current levels might be terrible for the market.
Hayes stated that if Bitcoin’s value falls below $20k, there might be a rise in spot selling of the cryptocurrency. He went on to say that if Ethereum drops below $1000, the same thing will happen.
Macro Data, A Matter Of Concern
The recent downward surge is driven chiefly by unfavorable macro data, which includes significant amounts of liquidation on the spot, derivatives, and loan markets.
With most investors liquidating their holdings, no additional cash is entering the market. This leaves it with only an intense selloff.
Ethereum is not the only cryptocurrency having difficulties; the DeFi industry suffers from a lack of new capital. This could lead to the market’s most prominent players exiting for good.
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Source: https://coinpedia.org/ethereum/ethereum-facing-huge-liquidation-these-are-the-crucial-levels-to-keep-an-eye-on/