NEWSLETTER
If the price of Ether (eth) falls by an additional 20%, the price decrease could trigger a waterfall of up to $ 336 million in decentralized finance settlements (Defi), according to Kevin Rusher, founder of the RAAC loan platform.
The executive warned that a decrease to $ 1,857 would trigger $ 136 million in liquidations, and a price drop at $ 1,780 could trigger additional $ 117 million in loan liquidations, which makes these the next price levels to see.
Rusher added that the worst case would be a 20% drop in the price of eth at around the price level of $ 1,500, which could liquidate $ 336 million in defi loans, sending the fallen markets. In a written statement shared with Coinlegraph, Rusher said:
“The main catalyst of this crisis is a single loan backed by eth of $ 130 million in Sky, previously Maker, which is on the verge of collapse despite the borrower that struggles to add more collateral. Each cycle, loans backed by cryptoes suffer from extreme volatility, which leads to waterfall settlements that block the price of assets. “
The Executive requested the integration of RWA, such as real estate and gold, which have many stable values, in the defi ecosystem to compensate for volatility and avoid waterfall liquidations due to overload.
Total eth settlements. Fountain: <a target="_blank" data-ct-non-breakable="null" href="https://www.coinglass.com/currencies/eth” rel=”nofollow noopener” target=”_blank” text=”null” title=”https://www.coinglass.com/currencies/eth“>Horn
Related: 3 reasons why ethereum can overcome their rivals after blocking the minimum of 17 months
The eth price crumbles; More pain comes?
Ether has fallen to a minimum of several years against bitcoin (btc), indicating another possible 30% drop against the supply covered asset and led some analysts who predicted a price potential of $ 1,600 for eth.
The eth price has decreased by more than 15% in the last seven days and has been quoting well below its 200 -day exponential mobile average (EMA) since February.
The relative resistance index (RSI) is currently in 31, which is almost in overall territory, which potentially represents a local fund and could indicate an imminent price investment.
Action and analysis of the current ethereum price. Fountain: Commercial view
Ether's disappointing price action led to the calls of some market analysts to change higher performance to maximize the profit potential.
“If you still get stuck in eth, it is likely to be a good time to turn it to buy a higher beta alternative,” said merchant Alex Krüger on March 12 x <a target="_blank" data-ct-non-breakable="null" href="https://x.com/krugermacro/status/1899879822408769883″ rel=”null” target=”null” text=”null” title=”null”>mail.
Magazine: Pectra Hard Fork explained: Will you return to ethereum's track?
This article does not contain advice or investment recommendations. Each investment and trade movement implies risk, and readers must carry out their own investigation by making a decision.
