Ethereum (ETH) Slumps Over 20%, Here’s Why $1150 Is The Next Low
Ethereum (ETH) price has fallen more than 20% in the last two days as a result of the stETH depeg with the ETH, delay in Ethereum Merge, and market-wide sell-off amid rising inflation.
The price could further plunge below $1150 as the financial constraint pushes major stETH and ETH hodlers including Alameda Capital, Celsius Network, Three Arrows Capital, and others to sell their holdings.
Ethereum (ETH) Price Falls Amid Massive Sell-off
The Ethereum (ETH) price is down nearly 8% in the last 24 hours, with the current price trading at $1,332. Celsius continues to liquidate its ETH and WBTC holdings. In fact, the company has transferred almost 104,000 ETH to FTX in the past three days, including 50,000 ETH today, 12,000 ETH yesterday, and 42,000 ETH the day before yesterday.
Moreover, Celsius also transferred about 9,500 WBTC to FTX today. Also, Celsius has paused withdrawal, swaps, and transfers between accounts to stabilize liquidity and operations.
Furthermore, MakerDAO Vault has just sold 65,000 ETH at an average price of $1155 to pay their debt and decrease risk. The DeFi sector is at risk as DeFi tokens continue to plunge and companies face financial issues.
Interestingly, Three Arrows Capital’s co-founder Zhu Su has removed ETH, AVAX, LUNA, SOL, NEAR, MINA, and other tokens from its Twitter profile. Three Arrows Capital, one of the largest stETH holders, had transferred most of their ETH holdings to FTX in May itself before the depeg. The ETH balance in its wallet address is just 0.4727. However, the firm has some stETH and might be looking to reduce holdings to decrease risk.
Meanwhile, stETH continues to depeg with ETH, with the current price trading at $1,248 against ETH at $1,332 at 7 AM UTC.
Ethereum (ETH) Risks Falling Below $1150
The Ethereum (ETH) price could potentially fall below $1150 due to heavy selling and pressure in the crypto market. DeFi analytics firm Parsec Finance has stated that if ETH falls to $1150, it risks nearly $500 million of on-chain collateral to liquidation. Thus, the price could further fall below $1150.
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