While uncertainties continue in the world of cryptocurrencies, the actions of a crypto whale have caused significant concern. The mentioned whale transferred 12,374 ETH to Compound and then borrowed $31.4 million in stablecoins. If Ethereum’s price potentially drops to $2,984, the whale’s long positions will be closed. Additionally, Ethereum has declined from $3,500 to $3,124 in about four days. The over 10% drop in ETH’s price since Monday has caused significant anxiety about possible further declines.
Ethereum and Bitcoin Are Falling
As the cryptocurrency market experiences declines, some whales are seen trying to turn this into an opportunity. One notable transaction involved a whale acquiring over $30 million worth of 9,425 ETH from Binance. More importantly, the total value of transactions conducted by the mentioned whale appeared to reach $120 million.
Among the cryptocurrencies acquired by the mentioned whale were high-volume coins like BNB, MATIC, LINK, and AVAX, as well as leading meme coins like Shiba Inu, Dogecoin, Pepe Coin, and Floki.
It would not be incorrect to say that the decline in Ethereum is correlated with BTC. There are reports suggesting that the decline in Bitcoin is triggered by large investors and miners. Market analyst Charles Edwards noted that long-term investors currently holding Bitcoin are actively selling their BTC.
According to information shared by Edwards through Glassnode data, there appears to be a negative flow of 374,000 in Bitcoin. The monetary equivalent of this analysis is believed to be worth $24 billion, indicating a movement of BTC towards exchanges.
The Future of Ethereum (ETH)
The potential liquidation of the Ethereum whale, who is said to have millions of dollars in transactions, could create greater fear in the market. A potential drop to the mentioned liquidation level of $2,984 could trigger a deeper decline and lead to more significant liquidations.
Amidst all this, Ethereum continues to find buyers at the $3,200 level after today’s 5% drop. The decline in ETH has caused the market cap to fall to $376 billion. The trading volume of ETH appears to be $20.7 billion following the sales.
