ETH Whale Faces Liquidation Amid Market Downturn
According to on-chain analytics, a major Ethereum (ETH) leveraged position is under pressure. The user had deposited 23,800 ETH, valued at approximately $48.56 million, into the Spark platform and borrowed 35.27 million DAI stablecoins.
The liquidation threshold for this position is set around $1,800. As ETH price dropped below the $2,000 psychological level, coming within just over $200 of liquidation, the whale initiated a deleveraging strategy.
Selling ETH to Reduce Loan Exposure
On-chain records show the user recently sold 238 ETH, equivalent to about $488,000 in DAI, specifically to repay outstanding debt and reduce risk exposure.
Concerns About Market Impact
- Further price declines could trigger more ETH selling
- Additional sales may create short-term downward pressure
- DeFi liquidation risks draw renewed attention
Market participants are closely watching ETH price movements and potential follow-through actions from this position.