Ethereum News: Ether’s Price Drop Threatens Major DeFi Loan

Ether’s Freefall Below $1.9K Jeopardizes Crypto Loan

Ethereum’s ETH has been spiraling, jeopardizing a large DeFi loan on lending platform Sky (formerly Maker). A borrower took out a $74 million loan in DAI by pledging 65,680 ETH as collateral. However, ETH plunged nearly 10% to $1,820, below the loan’s liquidation level slightly above $1,900. To avoid liquidation, the borrower deposited 2,000 ETH from Bitfinex to the Maker vault, propping up the loan’s collateral.

World Liberty Financial Portfolio Drops $110M Amid Ethereum Price Decline

World Liberty Financial (WLFI), a cryptocurrency investment platform backed by Donald Trump, has suffered $110 Million in unrealized losses due to a significant decline in Ethereum’s value. Ethereum accounts for 65% of the portfolio’s decline, with WLFI’s Ethereum holdings purchased at an average price of $3,240 now trading at around $2,000, resulting in a loss of approximately $80.85 Million. Other cryptocurrencies in WLFI’s portfolio have also been affected but to a lesser extent.

ETH Whales Risk Facing Liquidations As Ethereum Price Approaches $2000

Ethereum (ETH) price is currently hovering near $2,000, creating potential liquidation risks for whale investors. A notable whale on Maker holds 65,675 Ethereum worth $135.8 million and is at risk due to current market conditions. The Maker platform health rate has fallen to 1.05, and this whale’s liquidation price is $1,931.83, slightly below the current trading price. Despite a daily decrease of 2.81%, Ethereum maintains a trading value of $2,034.29, showing a significant price decline below the $2,091 resistance barrier.

Yuga Labs VP Predicts Ethereum Could Bottom at $200–$400 in Bear Market

Quit, vice president of blockchain at Yuga Labs, has warned that Ethereum (ETH) could see a drastic price drop to as low as $200–$400 if the crypto market has entered a new bear cycle. In a Mar. 11 post, Quit questioned optimistic price targets for ETH and pointed out that historical trends suggest an 80–90% drawdown could occur. Despite this outlook, Quit remains personally bullish but advises investors to reconsider their allocations if they are not prepared for further downside.