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CoinGape 2025-01-09 11:55:36

Ethereum Whale Faces $5M Liquidation For Third Time, What’s Next?

Crypto whales get their name for large crypto holdings and the potential to influence a particular cryptocurrency’s performance. One Ethereum whale is at risk of collapse as it faces $5M liquidation for the third time. To some extent, this is standard in the crypto industry, but let’s discuss what went wrong and its further risks. Ethereum Whale Loses $18.5M In Liquidations A crypto whale lost $18.5M after facing constant liquidations, per a Lookonchain X post . The onchain analytics platform states that the whale suffered a massive loss today, as 1,495 ETH, equivalent to $4.97M, was liquidated. This incident makes it the crypto trader’s third liquidation incident in a month. Before this ETH news, the whale’s 44.86 WBTC, equivalent to $4.37 million, was liquidated on December 10, 202,4. Another 95.46 WBTC ($9.25 million) faced liquidation on December 6, 2024. Crypto whales bet on the performance of cryptocurrencies, whether they will move higher or lower. However, not all bets exceed expectations, and many suffer losses. One whale lost $20M in liquidation on Sui’s position when the price declined below the threshold. This incident raises questions about this ETH whale’s risk leverage strategies and whether it faces any other liquidation risks. Future Liquidation Concerns & Risks The Lookonchain ETH news noted that the Ethereum whale holds another position on the Aave protocol. As whales hold 541.68 WBTC, equivalent to $51.1 million, they are also at risk of liquidation. Surprisingly, Bitcoin is the driving force here. If the BTC price drops to $90,810, just 2.5% below its current price of $93.2K, $51.1M will be liquidated. This can negatively affect the ETH whale, especially as Bitcoin is on a downtrend today, losing 3% in the last 24 hours due to the crypto market crash. What’s Next? An Ethereum whale lost a massive amount of funds, with millions worth of cryptos getting liquidated. Lookonchain’s calculation brings the total loss to $18.5M. This happened in three liquidation events in just one month, showing crypto traders’ constant wrong judgments. Another $51.1M worth of WBTC is still at risk of getting liquidated, which will happen if the Bitcoin price drops 2.4% from the current level to $90,810. In contrast, the rise in Bitcoin price could limit the risk to the crypto trader. The post Ethereum Whale Faces $5M Liquidation For Third Time, What’s Next? appeared first on CoinGape .

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