Ethereum’s Fall to $950 Is More Interesting Than You Think
Despite the massive selloff for Ethereum over the past few days, the second-largest cryptocurrency has successfully topped the $1,000 threshold and has yet to drop below it – unless you trade it on Uniswap.
A few hours ago, the WETH/USDC pair on Uniswap, with around $100 million in liquidity, experienced a massive squeeze, causing Ethereum to drop to $950. Selling 65,000 ETH at an average price of $1,131 fueled a short-term decline.
After diving into the details of the operation, we can find some interesting facts about the given command. Most importantly, the lending was funded by an Ethereum ICO participant to the tune of 560,000 ETH, with 409,000 ETH remaining on his wallet.
From March 16, 2021, until May 9, 2022, supported positions were opened with approximately 130,000 ETH. The investor used it to borrow 80 million DAI. Additionally, the ICO participant provided loans on Maker DAO with 96,700 ETH.
On May 30, the investor decided to increase leverage by buying 24,000 ETH on the borrowed funds with an average price of $1,961. With 153,000 ETH in support and $126 million in DAI lending, a participant in the ICO will face liquidation at $1,198. You already know what happens next.
On June 13, Ethereum fell to $1,200, posing a risk of liquidation, which is why the investor had no other option but to reduce his position size by selling 65,104 ETH for $1,131, leading to its liquidation. The price went up to $874.
After selling 65,000 ETH, an early Ethereum investor sold another 27,000 to reduce his position by $500 per ETH liquidated.