If the price of ether (ETH) falls by an additional 20%, the drop in prices could trigger a cascade of up to $ 336 million in decentralized financing liquidations (DEFI), according to Kevin Rusher, founder of the real world loan platform (RWA).
The executive warned that a drop to $ 1,857 would trigger $ 136 million in liquidations, and a price drop to $ 1,780 could potentially trigger an additional $ 117 million loan liquidations – which in fact the following price levels.
Rusher added that the worst case would be a 20% drop in the price of the ETH to approximately the price level of $ 1,500, which could liquidate $ 336 million in Defi loans, sending the falling markets. In a written declaration shared with Cointtelegraph, Rusher said:
“The main catalyst for this crisis is a single loan supported by ETH $ 130 million in the sky, formerly manufacturer, who is about to collapse despite the borrower to add more guarantee. Each cycle, the loans supported by the crypto, suffer from extreme volatility, leading to cascade liquidations that crush the price of assets. »»
The executive called for the integration of RWAs, such as real estate and gold, which include a lot of stable values, in the DEFI ecosystem to compensate for volatility and prevent the liquidations in cascade due to the surprise.
Total liquidations of ETH. Source: Rinsing
In relation: 3 reasons why Ethereum can surpass his rivals after having crashed at the low of 17 months
Eth Price collapses; No more pain to come?
The ether fell on multi -year stockings against Bitcoin (BTC), signaling another potential decrease of 30% against assets wearing the offer and led some analysts to predict a potential price of $ 1,600 for ETH.
The price of ETH has decreased by more than 15% in the last seven days and has been negotiated well below its 200 -day exponential mobile average (EMA) since February.
The relative force index (RSI) is currently at 31 years old, which is almost in territory, potentially representing a local background and could point out an imminent price reversal.
Action and analysis of current Ethereum prices. Source: Tradingview
Ether’s disappointing prices’ action has prompted the calls of certain market analysts to move to more efficient altcoins to maximize the profit potential.
“If she is still stuck on ETH, it’s probably the right time to throw him away to buy a higher beta Altcoin,” said merchant Alex Krüger in a post on March 12.
Review: Pectra Hord Frow explained-Will he recover Ethereum on the right track?
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
