Just-In: ‪$510 Million In Collateral Liquidations Will Trigger At This Ethereum (ETH) Price

Olivia Brooke
February 24, 2022
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Ethereum (ETH) Price Builds Strong Bullish Momentum, Here's Why?

The Ethereum blockchain continues to face issues of high gas fees. Nansen, an Ethereum gas fee tracking platform, revealed that Ethereum gas fees have been on the rise. On the day, median gas fees reached 250 gwei (over $9).

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Ethereum investors sight incoming risks

The gas fee has been increasing on the back of an increased number of transactions on the Ethereum blockchain. The biggest gas fee spenders in the last 24 hours have been DeFi crypto lending protocols. Over 18% of the spent gas fees originated from Uniswap, while 1inch and AAVE accounted for 3.43% and 3.20% of spent gas fees respectively.

The data indicates that investors are preparing for risk amidst falling Ether (ETH) price. Per data from Block Analytica, around $510 million in collateral liquidations will occur at an ETH price of $2082.

However, the current gas fees seem to be cheaper than previous months in dollar terms. In December, the median gas fee was around $22 according to data from BitInfoCharts. In January as well, gas costs were on average around $15 per transaction.

Meanwhile, the network plans to completely alleviate volatile gas fees with the arrival of ETH 2.0. The network expects that the migration to proof of stake later this year will bring more predictable gas fees.

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Ethereum (ETH) continues trading downward

The price of ETH has been shed over $700 in the last two weeks, falling -24.8%. On the day, Ether is changing hands at around $2,300, down -13.11% at the time of writing.

The current price is an over 50% drawdown from the ETH allall-timeice. Many market pundits, including the founder of Ethereum, Vitalik Buterin, have warned that the entire crypto market may have to bear a prolonged bear market. Bloomberg’s analysts also previously warned that the risk exists that the price of Ethereum could test levers around $1,700.

However, there are still bullish predictions for ETH. A panel of fintech specialists at Finders, a crypto comparison site, predict that 2022 could see an ETH price of $5,000.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.