Ethereum Whale Faces $5M Liquidation For Third Time, What’s Next?

09 Jan, 2025

Former SEO Writer

Expertise : Crypto News & Market Analysis, Content Strategy & SEO Writing

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.

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Ethereum Whales Dump With Major Losses, ETH Price Drop Ahead?

Highlights

An Ethereum whale lost $18.5M from three crypto liquidations within a month.
The whale lost $5M ETH at the latest, as 1,495 ETH got liquidated today.
The same whale's $51.5M worth of WBTC on Aave is also at risk of liquidation if Bitcoin price drops to $90,810.

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Crypto whales get their name for large crypto holdings and the potential to influence a particular cryptocurrency’s performance. One Ethereum whale is at risk of collapse as it faces $5M liquidation for the third time. To some extent, this is standard in the crypto industry, but let’s discuss what went wrong and its further risks.

Ethereum Whale Loses $18.5M In Liquidations

A crypto whale lost $18.5M after facing constant liquidations, per a Lookonchain X post. The onchain analytics platform states that the whale suffered a massive loss today, as 1,495 ETH, equivalent to $4.97M, was liquidated. This incident makes it the crypto trader’s third liquidation incident in a month.

Before this ETH news, the whale’s 44.86 WBTC, equivalent to $4.37 million, was liquidated on December 10, 202,4. Another 95.46 WBTC ($9.25 million) faced liquidation on December 6, 2024.

Crypto whales bet on the performance of cryptocurrencies, whether they will move higher or lower. However, not all bets exceed expectations, and many suffer losses. One whale lost $20M in liquidation on Sui’s position when the price declined below the threshold. This incident raises questions about this ETH whale’s risk leverage strategies and whether it faces any other liquidation risks.

Future Liquidation Concerns & Risks

The Lookonchain ETH news noted that the Ethereum whale holds another position on the Aave protocol. As whales hold 541.68 WBTC, equivalent to $51.1 million, they are also at risk of liquidation. Surprisingly, Bitcoin is the driving force here.

If the BTC price drops to $90,810, just 2.5% below its current price of $93.2K, $51.1M will be liquidated. This can negatively affect the ETH whale, especially as Bitcoin is on a downtrend today, losing 3% in the last 24 hours due to the crypto market crash.

What’s Next?

An Ethereum whale lost a massive amount of funds, with millions worth of cryptos getting liquidated. Lookonchain’s calculation brings the total loss to $18.5M. This happened in three liquidation events in just one month, showing crypto traders’ constant wrong judgments. Another $51.1M worth of WBTC is still at risk of getting liquidated, which will happen if the Bitcoin price drops 2.4% from the current level to $90,810. In contrast, the rise in Bitcoin price could limit the risk to the crypto trader.

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.

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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.