ETH collapse of 20% can be able to trigger $ 336m to Defi Liquidations – Web3 Exec
If the price of ether (Eth) Dropped by an additional 20%, lowering prices can trigger a cascade up to $ 336 million in decentralized finances (DEFI) fluids, according to Kevin Rusher, founder of the real-world asset (RWA) Lending Platform RAAC.
The Executive warned that a decline of $ 1,857 would defile $ 136 million in exterminations, and a price drop to $ 1,780 could potentially defile an additional $ 117 million in liquid loans -making the next price levels to watch.
Rusher added that the worst case of the situation was a 20% drop in ETH price up to around the $ 1,500 price level, which could liquidate $ 336 million to defi loans, sending markets to collapse. In a written statement shared with Cointelegraph, Rusher said:
“The main catalyst of this crisis is a single $ 130M backed SKY loan, a former manufacturer, which is on the verge of falling despite scrambling the borrower to add more collateral. Every cycle, crypto-supported loans suffer from intense volatility, leading to cascading-crashing prices.”
The Executive calls for the integration of RWAs, such as real estate and gold, featuring multiple stabler values, in the Defi ecosystem to offset offsetting and avoiding Cascading liquidations due to oververleveraging.
Total liquids in eth. Source: Coinglass
Related: 3 Reasons why Ethereum will lower its rivals after crashing into 17-month lows
The price of eth has collapsed; More pain to come?
Ether dropped in multi-year lows against bitcoin (Btc), Signs of another Potential 30% drop against the asset supply, and leads to some analysts predicting a potential $ 1,600 price below for ETH.
ETH prices have refused more than 15% over the past seven days and has been trading well below the 200-day exponential transfer of average (EMA) since February.
Kamag -child Index Index (RSI) is currently at 31, almost to oversold territory, which potentially represents a local bottom and can signal an upcoming price return.
Current action and Ethereum price evaluation. Source: Tradingview
Ether’s action failure motivates calls from some market analysts to move to increased performance of altcoins To maximize the potential income.
“If still stuck with ETH, it’s probably a good time to throw it away to buy a higher beta altcoin,” businessman Alex Krüger said on a March 12 x Post.
Magazine: Pectra Hard Fork explains – will it get Ethereum on track?
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
