Ether’s (ETH) 11.5% slide over the past 24 hours has moved the second largest cryptocurrency closer to a series of mammoth $ 340 million liquidations on the collateral of debt platform Makerdao.
On-Kain data shows that three makerdao positions will be liquidated when the ETH price hits $ 1,926, $ 1,842 and $ 1,793. Each position is worth between $ 109 million and $ 126 million.
Ether, tokenet for Ethereum Blockchain, trades about $ 2,390 after a market sale triggered by declining atmosphere and a fall in global equities.
Whether the jump is the trigger of a bear market is yet to be seen. Assets have typically dropped as much as 30% in previous bull markets to shake out over leverage before moving back to the head, ETH is down by 42% since December 16.
To trigger the Makerdao liquidations, ETH has to fall by another 19%, at which time it can trigger a liquidation cascade of decentralized funding (defi) protocols and exchanges.
Over the past 24 hours, $ 296 million is worth of ETH positions already liquidated on stock exchanges, according to Coinglass.
It is worth noting that degradation events spurred by sale can provide an opportunity for knowledgeable dealers to buy underrated assets, as the spot price is determined by a short -term deficiency of liquidity and not what can be considered the true value.
