The Ethereum (ETH) price is under pressure as it faces a massive selloff risk at $1016. Ethereum is currently trading at $1,064, down 13% in a day. The massive selloff will be caused by the liquidation of Three Arrows Capital as top lenders liquidate positions.
The wallet address marked as Three Arrows Capital on Nansen faces a liquidation risk of $264 million if the ETH price falls to $1016. It is actively repaying the AAVE debt.
Ethereum (ETH) Price at $1016 Will Liquidate 3AC
According to crypto analyst Onchain Wizard, a wallet marked as Three Arrows Capital on Nansen has been paying off its debt on AAVE V2 to avoid liquidation of its 223k ETH worth nearly $264 million. However, the collateralized position faces liquidation risk, if the ETH price falls to $1016. The wallet has a total debt of $198 million in USDT and USDC, with an 85% liquidity threshold.
The address uses USDT and USDC to repay the debt and withdraws ETH. Thereafter, Three Arrows Capital converts ETH to USDT or USDC through “sinofate.eth” and repays the debt on Aave V2. In fact, the address has sold nearly 50,000 ETH in the last 24 hours.
Moreover, Three Arrows Capital is liquidating its stETH holdings to ETH to repay its debt amid extreme market conditions. The hedge fund is one of the largest holders of stETH facing financial issues due to the Lido’s stETH depeg with the ETH. As the Ethereum Merge’s date remains uncertain, Three Arrows Capital is removing stETH.
Trending Stories
Three Arrows Capital’s co-founder Zhu Su has come forward on Twitter to calm the conditions that originated as a result of liquidation risks. He said:
“We are in the process of communicating with relevant parties and fully committed to working this out.”
ETH Prices May Fall After the FOMC Meeting
Ethereum’s (ETH) price could fall further during the FOMC meeting as the Federal Reserve will possibly be raising the interest rate by 75 bps. Currently, the ETH price continues to drag downwards, falling 6% in an hour.
Ethereum and Bitcoin both face massive fall risks under $1000 and $19,000 levels, respectively. With ETH could fall to $750 and BTC is expected to dive to 13,000.
- Elrond Price Jumps By 9% Over This Announcement
- XRP Holding Better Than Most Altcoins, Here’s Why
- Breaking: Polygon, Major Blockchains Hit With Network Attack
- New Crypto Rules In Europe: A Global Standard For Regulation?
- Third Biggest Whale Adds 1,416 Bitcoins In Last 2 Days; Will This Pump BTC?
- ‘Big Short’ Michael Burry Says Bitcoin Crash Is Only Halfway Through
- These Whales Scoop $850 mln Worth FTX Tokens Ahead Of BlockFi Deal
- Breaking: El Salvador Buys 80 Bitcoin (BTC), Here’s How Prices Reacted
- U.S. DoJ Slaps Charges Against Promoters of Baller Ape Club NFT In Rug Pull Scam
- Canada-based Ledn Challenges FTX’s Bid of BlockFi Acquisition With Better Proposal
- Polygon Price Analysis: V-top Reversal may Direct MATIC to $0.31 Support
- ETH Price Analysis: Is Ethereum Dropping To Three Digits?
- Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?
- NEAR Price Analysis: Falling Prices Eye $3 Breakdown; Should Coin Holders Worry?
- SHIB Price Analysis: Sustained Selling may Lead $SHIB to $0.0000074?
- Sandbox Price Analysis: Crashing SAND Prices Warns 25% Downfall
- Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26
- Chainlink Price Analysis: Wedge Pattern could Lead LINK price below to $5
- AAVE Price Analysis: Buyers Need $76.6 Breakout to Trigger Bullish Recovery
- Apecoin Price Analysis: Rising APE Price Knockout Another Barrier; is $6 Next?
