An unknown Ethereum whale had a 152k ETH position on Aave that was almost liquidated, before the ETH price spiked over $100 to the upside.
The CEX price of Ethereum (on centralized exchanges) did go lower than $895.4, the ETH whale’s liquidation price. Today Ethereum dropped to $881 on Binance.
However the Aave platform uses Chainlink pairs with ETH denominations, and tracks the market-wide price of an asset – as a result the ETH price based on the Chainlink Oracle only hit $895.6. The Aave lending platform also has a 1% deviation threshold before triggering liquidations.
Possibly in response to that ETH whale not being liquidated, and news of Celsius lending platform also paying down $27 million of their debt, the Ethereum price then spiked back to approximately $1,000 – an over 10% pump from the lows.
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ETH Whale Almost Liquidated
1. Chainlink Price Feeds track the market-wide price of assets, not the spot price of a single exchange
2. ETH/USD feed on Ethereum did hit $892 at the low
3. Aave doesn’t use the Chainlink ETH/USD feed because all assets and feeds are denominated in ETH https://t.co/4RngyPL6uK
— ChainLinkGod.eth (@ChainLinkGod) June 18, 2022
Earlier this week the ETH whale’s position was 212k ETH, which he sold some of to reduce it to 152k.
152,000 Ether is worth almost $140 million at his liquidation price – if hit that could’ve triggered an Ethereum flash crash to much lower prices.
Given the extreme fear in the markets and it being the weekend with legacy markets closed and lower liquidity, there would’ve been very few buyers waiting to step in.
Read the full ETH whale thread from DeFiyst (@DeFiyst) on Twitter.
Celsius & Solana Whale Liquidation
Several other DeFi analysts and crypto traders are tracking whale liquidation prices. Hsaka (@HsakaTrades) on Twitter reported a Solana whale has a $160 million position on the Solend platform that will be liquidated if the SOL price drops to $22.
~$160m sol whale liq at 22, no activity in two weeks (@0xrooter tracking)
~$140m eth whale on aave liq at 895, narrowly escaping once again (@DeFiyst tracking)
degeneracy is wealth agnostic pic.twitter.com/ticmtyPszH
— Hsaka (@HsakaTrades) June 18, 2022
Around the time DeFiyst tweeted that Celsius Network fully paid off a $27 million LINK position on the Maker lending platform, preventing that from being liquidated, the ETH price then spiked to $1,015.
At the time of writing Ethereum is trading at around $990, and some Twitter traders speculate a temporary bottom at $881 may be in for ETH, now that fears of an Ethereum liquidation cascade have passed.
Other whales that were attempting to liquidate the ETH whale’s position, may also have given up for now and closed their shorts – allowing the Ethereum price to recover. During the crash there was more selling pressure on ETH than on altcoins, with ETH at one point 18% in the red on crypto exchanges – which has now lowered to 9%.
Bitcoin also bounced from a low today of $17,622 and is now trading at over $19,000 again. It’s a long weekend however, and Celsius reportedly still have a Bitcoin position that will be liquidated if the BTC price drops to approximately $14,000. Further market volatility could be seen on Sunday or Monday.
- Ethereum Price Reversal Now?
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