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Ethereum Whale Faces $106 Million Loss After Market Crash, When Will ETH Price Recover?
The cryptocurrency market has taken a sharp downturn, with significant losses reported across the board. This volatility has had far-reaching consequences for investors, with one Ethereum whale facing an enormous loss of approximately $106 million.
A recent incident highlights the devastating impact of these market crashes on even the most substantial crypto holders. A single investor, identified as “7 Siblings,” lost a staggering 67,570 ETH (approximately $106 million) due to automatic liquidation on Sky, formerly known as Maker. This occurred following Ether’s dramatic price plunge by nearly 14% on April 6, causing its value to drop from above $1,800 to around $1,500.
Sky’s protocol enforces overcollateralization, typically requiring a minimum of $150 in ETH for every 100 DAI borrowed. As the market declined and prices dipped below this threshold, the automatic liquidation mechanism was triggered, resulting in significant losses for the investor.
In contrast, some Ethereum whales have taken advantage of these low prices to make strategic investments. Notably, “7 Siblings” purchased 24,817 ETH at $1,700, spending approximately $42 million. This transaction brought their total holdings to over 1.2 million ETH, valued at roughly $1.93 billion.
It’s worth noting that this whale has accumulated a substantial amount of Ethereum since early February, investing nearly $230 million. However, they currently face an unrealized loss of about $64 million. Furthermore, IntoTheBlock reported that other Ethereum whales acquired over 130,000 ETH when prices fell below $1,800.
Ethereum’s market dominance has slipped below 9.4%, a five-year low. The growing dominance of Bitcoin near 60% poses a significant challenge to Ethereum’s position as the leading altcoin.
Source: https://cryptonewsland.com/ethereum-whale-faces-106-million-loss-after-market-crash-when-will-eth-price-recover/
