03-13-2025, 11:20 PM
ETH falling by 20% may trigger $336M in DeFi liquidations — Web3 exec
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDMvMDE5NThmYzYtZDdiNS03ZjQ1LWJhZGMtNmJlNTg2NDEyZmJl.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDMvMDE5NThmYzYtZDdiNS03ZjQ1LWJhZGMtNmJlNTg2NDEyZmJl.jpg" alt="ETH falling by 20% may trigger $336M in DeFi liquidations — Web3 exec"></p><p>If the price of Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="null">ETH</a>) falls by a further 20%, the price decline could trigger a cascade of up to $336 million in decentralized finance (DeFi) liquidations, according to Kevin Rusher, founder of the real-world asset (RWA) lending platform RAAC.<p>The executive warned that a decline to $1,857 would trigger $136 million in liquidations, and a price drop to $1,780 could potentially trigger an additional $117 million in loan liquidations — making these the next price levels to watch.</p><p>Rusher added that the worst-case scenario would be a 20% drop in ETH’s price to around the $1,500 price level, which could liquidate $336 million in DeFi loans, sending the markets tumbling. In a written statement shared with Cointelegraph, Rusher said:</p><blockquote>“The main catalyst of this crisis is a single $130m ETH-backed loan in Sky, formerly Maker, which is on the verge of collapse despite the borrower scrambling to add more collateral. Every cycle, crypto-backed loans suffer from extreme volatility, leading to cascading liquidations that crash the price of assets.”</blockquote><p>The executive called for integrating RWAs, such as real estate and gold, which feature much stabler values, into the DeFi ecosystem to offset volatility and prevent <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-trader-loses-308-m-50x-leverage-market-volatility" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ether-trader-loses-308-m-50x-leverage-market-volatility">cascading liquidations due to overleveraging</a>.</p><figure><img alt="Leverage, Ether Price, Ethereum Price" src="https://s3.cointelegraph.com/uploads/2025-03/01958feb-c5ee-7339-913e-3f61e3034f5d" title=""><figcaption style="text-align: center;"><p><em>Total ETH liquidations. Source: </em><a data-ct-non-breakable="null" href="https://www.coinglass.com/currencies/ETH" rel="nofollow noopener" target="_blank" text="null" title="https://www.coinglass.com/currencies/ETH"><em>CoinGlass</em></a></p></figcaption></figure><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-can-outperform-rivals-crashing-17-month-lows" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ethereum-can-outperform-rivals-crashing-17-month-lows"><em><strong>3 reasons why Ethereum can outperform its rivals after crashing to 17-month lows</strong></em></a></p><h2>ETH price crumbles; more pain coming?</h2><p>Ether has dropped to multi-year lows against Bitcoin (<a data-ct-non-breakable="null" href="/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>), signaling another <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-falling-knife-another-30-crash-bitcoin" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ethereum-falling-knife-another-30-crash-bitcoin">potential 30% drop</a> against the supply-capped asset, and led to some analysts predicting a potential <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/will-ethereum-price-bottom-1-6k" rel="" target="_self" text="null" title="https://cointelegraph.com/news/will-ethereum-price-bottom-1-6k">$1,600 price bottom for ETH</a>.</p><p>ETH’s price has declined by over 15% in the past seven days and has been trading well below its 200-day exponential moving average (EMA) since February.</p><p>The relative strength index (RSI) is currently at 31, which is almost in oversold territory, potentially representing a local bottom and could signal an impending price reversal.</p><figure><img alt="Leverage, Ether Price, Ethereum Price" src="https://s3.cointelegraph.com/uploads/2025-03/01958fed-1af1-7718-9508-c40f84d2ff52" title=""><figcaption style="text-align: center;"><p><em>Current Ethereum price action and analysis. Source: </em><a data-ct-non-breakable="null" href="https://www.tradingview.com/chart/g7xkPkTa/?symbol=BINANCE%3AETHUSD" rel="nofollow noopener" target="_blank" text="null" title="https://www.tradingview.com/chart/g7xkPkTa/?symbol=BINANCE%3AETHUSD"><em>TradingView</em></a></p></figcaption></figure><p>Ether’s disappointing price action prompted calls from some market analysts to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-bitcoin-ratio-multi-year-low-rotate-altcoins-crypto-analyst" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ether-bitcoin-ratio-multi-year-low-rotate-altcoins-crypto-analyst">shift into higher-performing altcoins</a> to maximize profit potential.</p><p>“If still stuck on ETH, it is likely a good time to dump it to buy a higher beta altcoin,” trader Alex Krüger said in a March 12 X <a data-ct-non-breakable="null" href="https://x.com/krugermacro/status/1899879822408769883" rel="null" target="null" text="null" title="null">post</a>.</p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/pectra-hard-fork-explained-ethereum-scaling-roadmap/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/pectra-hard-fork-explained-ethereum-scaling-roadmap/"><em><strong>Pectra hard fork explained — Will it get Ethereum back on track?</strong></em></a></p><p class="post-content__disclaimer" type="">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template></p>
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https://cointelegraph.com/news/eth-falli...er_inbound
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDMvMDE5NThmYzYtZDdiNS03ZjQ1LWJhZGMtNmJlNTg2NDEyZmJl.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDMvMDE5NThmYzYtZDdiNS03ZjQ1LWJhZGMtNmJlNTg2NDEyZmJl.jpg" alt="ETH falling by 20% may trigger $336M in DeFi liquidations — Web3 exec"></p><p>If the price of Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="null">ETH</a>) falls by a further 20%, the price decline could trigger a cascade of up to $336 million in decentralized finance (DeFi) liquidations, according to Kevin Rusher, founder of the real-world asset (RWA) lending platform RAAC.<p>The executive warned that a decline to $1,857 would trigger $136 million in liquidations, and a price drop to $1,780 could potentially trigger an additional $117 million in loan liquidations — making these the next price levels to watch.</p><p>Rusher added that the worst-case scenario would be a 20% drop in ETH’s price to around the $1,500 price level, which could liquidate $336 million in DeFi loans, sending the markets tumbling. In a written statement shared with Cointelegraph, Rusher said:</p><blockquote>“The main catalyst of this crisis is a single $130m ETH-backed loan in Sky, formerly Maker, which is on the verge of collapse despite the borrower scrambling to add more collateral. Every cycle, crypto-backed loans suffer from extreme volatility, leading to cascading liquidations that crash the price of assets.”</blockquote><p>The executive called for integrating RWAs, such as real estate and gold, which feature much stabler values, into the DeFi ecosystem to offset volatility and prevent <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-trader-loses-308-m-50x-leverage-market-volatility" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ether-trader-loses-308-m-50x-leverage-market-volatility">cascading liquidations due to overleveraging</a>.</p><figure><img alt="Leverage, Ether Price, Ethereum Price" src="https://s3.cointelegraph.com/uploads/2025-03/01958feb-c5ee-7339-913e-3f61e3034f5d" title=""><figcaption style="text-align: center;"><p><em>Total ETH liquidations. Source: </em><a data-ct-non-breakable="null" href="https://www.coinglass.com/currencies/ETH" rel="nofollow noopener" target="_blank" text="null" title="https://www.coinglass.com/currencies/ETH"><em>CoinGlass</em></a></p></figcaption></figure><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-can-outperform-rivals-crashing-17-month-lows" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ethereum-can-outperform-rivals-crashing-17-month-lows"><em><strong>3 reasons why Ethereum can outperform its rivals after crashing to 17-month lows</strong></em></a></p><h2>ETH price crumbles; more pain coming?</h2><p>Ether has dropped to multi-year lows against Bitcoin (<a data-ct-non-breakable="null" href="/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>), signaling another <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-falling-knife-another-30-crash-bitcoin" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ethereum-falling-knife-another-30-crash-bitcoin">potential 30% drop</a> against the supply-capped asset, and led to some analysts predicting a potential <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/will-ethereum-price-bottom-1-6k" rel="" target="_self" text="null" title="https://cointelegraph.com/news/will-ethereum-price-bottom-1-6k">$1,600 price bottom for ETH</a>.</p><p>ETH’s price has declined by over 15% in the past seven days and has been trading well below its 200-day exponential moving average (EMA) since February.</p><p>The relative strength index (RSI) is currently at 31, which is almost in oversold territory, potentially representing a local bottom and could signal an impending price reversal.</p><figure><img alt="Leverage, Ether Price, Ethereum Price" src="https://s3.cointelegraph.com/uploads/2025-03/01958fed-1af1-7718-9508-c40f84d2ff52" title=""><figcaption style="text-align: center;"><p><em>Current Ethereum price action and analysis. Source: </em><a data-ct-non-breakable="null" href="https://www.tradingview.com/chart/g7xkPkTa/?symbol=BINANCE%3AETHUSD" rel="nofollow noopener" target="_blank" text="null" title="https://www.tradingview.com/chart/g7xkPkTa/?symbol=BINANCE%3AETHUSD"><em>TradingView</em></a></p></figcaption></figure><p>Ether’s disappointing price action prompted calls from some market analysts to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-bitcoin-ratio-multi-year-low-rotate-altcoins-crypto-analyst" rel="" target="_self" text="null" title="https://cointelegraph.com/news/ether-bitcoin-ratio-multi-year-low-rotate-altcoins-crypto-analyst">shift into higher-performing altcoins</a> to maximize profit potential.</p><p>“If still stuck on ETH, it is likely a good time to dump it to buy a higher beta altcoin,” trader Alex Krüger said in a March 12 X <a data-ct-non-breakable="null" href="https://x.com/krugermacro/status/1899879822408769883" rel="null" target="null" text="null" title="null">post</a>.</p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/pectra-hard-fork-explained-ethereum-scaling-roadmap/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/pectra-hard-fork-explained-ethereum-scaling-roadmap/"><em><strong>Pectra hard fork explained — Will it get Ethereum back on track?</strong></em></a></p><p class="post-content__disclaimer" type="">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template></p>
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https://cointelegraph.com/news/eth-falli...er_inbound