An ether (ETH) position worth more than $126 million came within 4% of being liquidated amid a crypto market plunge on Tuesday.
ETH has now retraced more than the entirety of Sunday’s rally, shedding 22% of its value in the past 48 hours as it trades at $2,080.
A fortuitous bounce at $2,000 protected Ethereum’s decentralized finance (DeFi) ecosystem from a series of liquidations on collateralized debt platform MakerDAO.
The first level sat at $1,929 with another two positions set to be liquidated at $1,844 and $1,796. The combined value of all three positions is $349 million.
Price action is often drawn to liquidations levels as trading firms target areas of supply. When a liquidation is triggered on MakerDAO, the ETH pledged as collateral will be sold, or auctioned off, with a portion of fees going to the protocol. In terms of MakerDAO, the ETH is often purchased at a discount and later sold on the wider market for a profit – which has…
