The broader crypto market bloodbath has triggered an unexpected race for survival among Ethereum (ETH) whale investors. According to insights from crypto analytics platform Lookonchain, amid the intensive price slump, many traders are about to face liquidations, as the ETH price falls to a 24-hour low of $2,839.82.
Moving against potential liquidation
In the trading world, the market dynamics are always notably different. One common trend is that traders generally borrow money with leverage, and price fluctuations often push these investors into losses or profits.
In line with these harsh market conditions, Lookonchain said three whales deposited 28,558 ETH worth approximately $82.2 million to Binance earlier today. This massive amount was used to repay the debts they owed.
As the price of $ETH drops, many whales are about to face the liquidation of $ETH deposited in #Aave and #Compound.
3 whales deposited 28,558 $ETH($82.2M) to #Binance in the past 2 hours and sold to repay debt.https://t.co/4ynPQwessDhttps://t.co/ABzz0fceAt… pic.twitter.com/PNYtFvlnV1
— Lookonchain (@lookonchain) July 5, 2024
Traders are often unlucky as the market downturn might happen unexpectedly, giving little or no time for traders to react to save their capital. This trend was seen weeks ago when Curve Finance Founder Michael Egorov suffered one of the worst liquidations on the market this year.
In another Lookonchain post on X, a trader got caught up in the liquidation as he saw a total of 4,215 ETH worth approximately $12.2 million of his funds liquidated. However, this whale appears to have started repaying the debt.
Ethereum price outlook
The Ethereum ecosystem is undergoing a very intense sell-off, marked by the slump of the top ETH-based tokens. At the time of writing, the price of ETH itself is changing hands for $2,864.08, down by 9.09% in the past 24 hours.
With the ecosystem mega coin in a downtrend, major altcoins like Shiba Inu (SHIB) and Chainlink (LINK) are down by 13.32% and 13.04% to $0.00001325 and $11.39, respectively.
While the ecosystem appears strained, experts are optimistic that the coin is likely trading around its price fall, with a sustained rebound set to be recorded soon.
