Ethereum Price Nears Oversold Condition as $121.8 Million Liquidation Shakes Market

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  • ETH’s price dip below $1,800 led to the liquidation of 67,675 ETH, esteemed at $121.8 million.
  • The whale’s actions to restrain liquidation, including depositing $3.73 million in ETH failed.
  •  Technical indicators show a continuous bearish trend, with RSI at 34.36 and MACD at -180.67.

Ethereum’s price recently fell below the vital $1,800 mark, triggering a liquidation of 67,675 $ETH, valued at approximately $121.8 million, as noted by Lookonchain. The large-scale liquidation comes as the whale’s position failed to hold up against the market’s downward movement.

Efforts to Prevent Liquidation Unsuccessful

Before the liquidation, the whale made multiple efforts to prevent this outcome. They deposited 2,000 $ETH, valued at $3.73 million, into the account. Additionally, the whale repaid 1.54 million DAI in an attempt to reduce the liquidation price.

This intervention lowered the liquidation threshold to $1,836.43, but despite these actions, the market price still dipped below the necessary level, triggering the liquidation. According to Coinglass data at the time of press, the ETH price reads at $1903.05. Total liquidations stand at $21.67 million, with $9.1 million in short liquidations and $10.1 million in long liquidations. 

Source: Coinglass

Among exchanges, Binance recorded the highest short liquidations at $9.1 million, while CoinEx saw the largest long liquidations at $381.82K. Other exchanges, such as OKX, Bybit, and Bitfinex, show varied levels of liquidation.

Consequences of the Price Drop

The liquidation of 67,675 ETH occurred as ETH’s price fell below the key point, resulting in the forced sale of a notable position. These types of liquidations often lead to price volatility, impacting market stability. The actions of this whale are not strange in the crypto space, as large positions are particularly vulnerable to price changes.

According to TradingView data, the RSI is at 34.36, indicating that ETH is nearing an oversold state, which could signal a probable price reversal or consolidation. The MACD shows a negative value of -180.67, with the MACD line below the signal line, suggesting bearish swiftness.

Source: TradingView

An additional negative histogram validates the declining market trend. The current price of ETH stands at $1,899.46 as recent market indicators show signature signals of market weakness, which can be overcome only through a market reversal.

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