Significant Ethereum whale is about to go bankrupt, putting at risk more than $30 million in borrowed cryptocurrency. The analytics account @lookonchain said that if Ethereum prices keep going down, this trader’s holdings could be closed.
The whale put $12,374 worth of Ethereum into Compound and borrowed $31.4 million worth of stablecoins. According to @lookonchain, this whale will sell off all of their long holdings if the price of Ethereum drops to $2,984.
Ethereum’s Significant Price Decline
At the same time, another whale bought a lot of cryptocurrency earlier today, buying 9,425 ETH worth a little more than $30 million. It was found by @lookonchain that this new wallet also bought other cryptocurrencies, such as BNB, MATIC, LINK, AVAX, and popular meme coins like Floki, Shiba Inu, Dogecoin, and Pepe Coin.
This whale took out $120 million worth of altcoins from Binance. ETH made up the majority of the buy. ETH, the second-largest meme cryptocurrency, has dropped from $3,500 to $3,150 this week, a 10.42% drop.
During the course of today, ETH fell by 3.03% in a single red hourly candle, then slightly rose, and then fell again by 3.09%. This drop is similar to the current drop in Bitcoin, which has been falling hard since Monday.
Analyst Charles Edwards wrote on Twitter that Bitcoin prices are falling because major players, like miners and long-term users, are selling off their Bitcoin. Edwards shared data from Glassnode that shows there is currently a negative flow of 374,000 Bitcoin, which is the same as selling off about $24 billion.
Recently, the governments of both the US and Germany sold large amounts of Bitcoin and ETH.As the cryptocurrency market continues to be unstable, these events show how high the risks are for the major players. The market is keeping a close eye on the at-risk Ethereum whale because no one knows what will happen.
