Ethereum Whales Trigger Panic as Massive Liquidations Loom

The recent 'Black Monday' crash in the stock market has sent shockwaves through the crypto world, triggering a massive sell-off and sparking fears of a looming bear market.

Bitcoin’s price plunged below $75,000, while Ethereum declined below $1,500 after holding steady for more than two years. Panic gripped investors as major Ethereum holders, often referred to as whales, began liquidating significant amounts of ETH, signaling a potential downward trend.

One of the most alarming developments came when a whale offloaded 67,570 ETH—valued at over $106 million when priced at $1,650—causing heightened concern among market participants. Another long-time holder, who had maintained a substantial Ethereum position for more than a decade, made a strategic shift by converting over $22 million worth of ETH into stablecoins.

In a sudden move, this whale transferred 14,000 ETH to Binance and withdrew $15.5 million in stablecoins, possibly as a hedge against market volatility or as a sign of dwindling confidence in Ethereum’s short-term performance.

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In another noteworthy move, a whale with a massive 220,000 ETH position, valued at approximately $340 million, repaid 3.52 million DAI and deposited 10,000 ETH to bring the liquidation threshold down to $1,119.3. If Ethereum’s value falls below this mark, the entire stash risks being liquidated, sending shockwaves through the market. Similarly, another major ETH holder could face forced liquidation of 15,000 ETH unless additional collateral is secured or debts are repaid.

Meanwhile, the spot ETH ETF has seen significant withdrawals, with more than 26,230 ETH—worth about $50 million—being pulled out. This exodus underscores the growing uncertainty and bearish sentiment among investors as the market tries to navigate through this turbulent period.

Alexander Stefanov