The post How Ethereum Whale Risks Liquidation After Buying 25,674 ETH: Details appeared on BitcoinEthereumNews.com.

Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. According to Lookonchain, an Ethereum whale has recently made a huge purchase of 25,674 ETH; however, this action could backfire if the price of ETH falls below a specific threshold, triggering a liquidation event. From all indications, it appears that the whale obtained the said ETH from MakerDAO. This decentralized lending platform allows users to mint stablecoins (DAI) by locking up their crypto assets as collateral. Lookonchain reports that the whale had spent 61 million DAI to buy 25,674 ETH; however, the whale shortly after sold 5,851 ETH out of this stash for a value of 14 million DAI, of which they made a profit of $99,000. Although the whale had made some profits from this strategy, they also faced the risk of liquidation. If the ETH price goes below a certain level, the whale’s collateral will be insufficient to cover their debt, and MakerDAO will automatically liquidate the ETH to reclaim the DAI. According to Lookonchain, if the price of ETH drops to $2,257, the said large ETH holder might be in danger of liquidation. This is because the healthy ratio on MakerDAO is presently as low as 1.03. The Ethereum price is nearing this threshold, having fallen 3.56% in the last 24 hours to trade at $2,280, according to CoinMarketCap data. Since reaching a high…

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Filed under: News - @ December 31, 2023 2:20 am