Ethereum (ETH) market has been experiencing intense volatility. After breaking below $2,000 yesterday, it further dropped to $1,860 on Saturday (29th) afternoon and continued to fluctuate, currently at $1,870, down over 2.1% in the past 24 hours.
Whale's 67,000 ETH Just 100 Dollars Away from Liquidation
Notably, crypto analyst Yu Jin posted earlier today that a whale holding 67,000 ETH (worth approximately $125 million) is just $100 away from liquidation, with a liquidation price around $1,787.
On 3/11, this whale's 67,000 ETH position was close to liquidation due to ETH price drop, which attracted much attention. That day, he saved his position through repayment and position reduction. Later, ETH's rebound temporarily took him out of the ICU.
After leaving the ICU, he didn't manage anything, making no additional margin or position reduction to lower the liquidation price. Now ETH is about to drop again, and if it falls another $100, his position will be back in the ICU.
Additionally, Lookonchain today stated that another whale holding 60,810 ETH (worth $113 million) also faces liquidation risk, with a liquidation price around $1,805.
Ethereum Futures Premium Drops to 1-Year Low, Is It Bottom?
Cointelegraph reported, between March 26 and March 28, the price dropped 9.3%, first testing the $1,860 level in two weeks. This adjustment led to over $114 million in leveraged ETH futures being liquidated and reduced the premium relative to regular spot market to a 1-year low of 2%, indicating weak leveraged buying demand. Some traders suggest that the ETH futures premium hitting bottom is a bottoming signal.
However, analysts point out that to determine if whales have lost interest in Ethereum, it's crucial to observe the pricing of put (sell) and call (buy) options.
When traders expect a downward trend, the 25% delta skew indicator rises above 6%, indicating higher hedging strategy demand. In contrast, bullish periods typically push the skew below -6%. Currently, the indicator is at 7%, suggesting professional traders lack confidence, increasing the possibility of further bearish movement.
Therefore, from a derivatives market perspective, there's almost no indication that the recent ETH price adjustment has bottomed out. Essentially, investors don't believe the $1,800 support level will hold.
Analysts believe that the Pectra upgrade, tentatively scheduled for late April, which could improve fees and user experience, might provide a rebound opportunity for ETH. However, before that, ETH's likelihood of outperforming the Altcoin market remains small.
