Ethereum Price Risks $24M Collateral Liquidation If ETH Falls To This Level
Ethereum price slumped to $3,200 level amid massive long liquidations and further dip could lead to a $24 million collateral liquidation.
The decentralized finance (DeFi) ecosystem found itself on shaky ground as liquidations soared. In the last 24 hours, the DeFi ecosystem witnessed more than $5.4 million in collateral liquidations of which Ethereum (ETH) held a massive share. This comes amid the Ethereum price drop to $3,200 after it neared rhe $4,100 mark earlier this month.
Ethereum Price Drop Risks Massive Collateral Liquidation The DeFi sector witnessed $4.27 million collateral liquidations tied to Ethereum alone, according to Parsec data. Moreover, amid the Ethereum price volatility, the data suggest massive collateral liquidations if ETH nosedived to $3,008. At this level, an enormous $24 million worth of ETH in collateral would be liquidated.
Adding fuel to the fire, on-chain derivatives exchanges, including GMX, Kwenta, and Polynomial, have collectively triggered liquidations surpassing a staggering $52 million in the same period. As Ethereum’s price dipped to $3,200 from its recent $4,100 peak, short traders realized their profits by buying back their positions.
However, long position holders indulged into panic selling to minimize their losses from the recent ETH price crash. According to Coinglass , Ethereum registered $120.27 million liquidations in the last 24 hours of which a staggering $103.54 million was liquidated by long players.