Ethereum News: Bybit CEO Raises Risk Control Concerns Over DEXs Following Major ETH Liquidation

In a recent development in the cryptocurrency world, Bybit CEO Ben Zhou has voiced his concerns regarding decentralized exchanges (DEXs) and their risk management practices. This comes on the heels of a significant Ethereum (ETH) liquidation event on Hyperliquid, involving a whale and resulting in substantial losses for the platform’s liquidation engine.

Bybit CEO Raises Concerns About DEXs’ Risk Controls After Hyperliquid ETH Liquidation

Bybit CEO Ben Zhou has expressed concerns about decentralized exchanges (DEXs) and their risk management mechanisms, following a significant Ethereum (ETH) liquidation on Hyperliquid. A whale strategically liquidated a 175,000 ETH position with 50x leverage, resulting in a $4 million loss for Hyperliquid’s liquidation engine, HLP Vault. The whale ultimately secured a net profit of $1.8 million. Zhou noted that both centralized exchanges (CEXs) and DEXs face challenges in managing whale liquidations and suggested alternative risk control measures such as dynamic risk limits and enhanced market surveillance tools.

Tron’s Justin Sun Seeks Answers on Ethereum Selling Pressure

As of Thursday’s early Asian trading session, ETH was valued at $1,880, marking a 51.63% decline over the past three months. Bears have driven the crypto down 30.6% in the last 30 days and nearly 18% in the past week. Market watchers, including Alexander from PostFiat, weighed in on Ethereum’s struggles, with Alexander pointing to Ethereum’s inability to sustain meaningful transaction growth since its 2017 peak and bashing the network for failing to become deflationary after moving from PoW to PoS.

Ethereum Nears Key Historical Levels for Buying Opportunities

Ethereum has been on a downtrend since mid-December, losing over 50% of its value. However, it has now reached an oversold zone similar to previous major downturns, such as the 2021 Terra collapse and the 2018 deep bear market. Qiao Wang, a prominent crypto figure, has pointed out that this could be a prime buying opportunity for long-term investors.

Ethereum Cost Basis Data Reveals Support and Resistance Levels

Ethereum ($ETH) price dynamics are being influenced by historical accumulation patterns. According to Glassnode’s latest cost basis distribution data, $1.9K is identified as the potential support zone for ETH, while $2.2K serves as the resistance area. Over the past week, Ethereum briefly dipped below the $1.88K accumulation cluster but showed no engagement at this level. Instead, new accumulation emerged at $1.9K.