The price of Ethereum (ETH) has dropped more than 20% in the previous two days due to the stETH depeg from the ETH, a delay in the Ethereum Merge, and a market-wide sell-off amid growing inflation.
As a result of the financial constraints, large stETH and ETH hodlers such as Alameda Capital, Celsius Network, Three Arrows Capital, and others may be forced to sell their holdings.
The price of Ethereum (ETH) is falling due to a massive sell-off.
The price of Ethereum (ETH) has dropped about 8% in the previous 24 hours, and it is currently trading at R21 407. Celsius’s ETH and WBTC holdings are still being liquidated. In fact, in the last three days, the corporation has sent about 104,000 ETH to FTX, including 50,000 ETH today, 12,000 ETH yesterday, and 42,000 ETH the day before yesterday.
Furthermore, Celsius moved approximately 9,500 WBTC to FTX today. Celsius has also put a halt to withdrawals, swaps, and transfers between accounts in order to maintain liquidity and operations.
In addition, MakerDAO Vault just sold 65,000 ETH at an average price of R18 562 in order to pay off debt and reduce risk. The DeFi industry is in jeopardy as DeFi tokens continue to fall in value and firms face financial difficulties.
Zhu Su, the co-founder of Three Arrows Capital, has removed ETH, AVAX, LUNA, SOL, NEAR, MINA, and other tokens from his Twitter profile. Before the depeg, Three Arrows Capital, one of the largest stETH holders, had shifted the majority of their ETH holdings to FTX. The amount of ETH at its wallet address is 0.4727. The firm does, however, possess some stETH and may be aiming to reduce its holdings to mitigate risk.
Meanwhile, stETH continues to depeg from ETH, with a current price of R20 057 versus R21 406 for ETH at 7 a.m. UTC.
Ethereum (ETH) is on the verge of falling below R18 264
Due to significant selling and pressure in the crypto market, the price of Ethereum (ETH) could go below R18 264. Parsec Finance, a DeFi analytics firm, has claimed that if ETH goes below R18 264, almost R8 billion in on-chain collateral will be liquidated. As a result, the price could drop even lower than R18 264.