Ether (ETH) is on the edge of a cliff, and if it slips another 20%, we could see a massive $336 million in DeFi liquidations. Kevin Rusher, the brains behind RAAC, a real-world asset lending platform, is sounding the alarm. He warns that if ETH hits $1,857, we’re looking at $136 million in liquidations. And if it drops to $1,780? Another $117 million could vanish into thin air.
The worst-case scenario? A nosedive to around $1,500, potentially triggering a whopping $336 million in DeFi loan liquidations. This could send shockwaves through the crypto markets. Rusher points to a single $130 million ETH-backed loan in Sky (formerly Maker) as the catalyst. Despite frantic attempts to shore up collateral, this loan teeters on the brink of collapse.
Rusher suggests a game-changer: integrating real-world assets like real estate and gold into DeFi. These assets offer stability and could act as a buffer against the wild volatility that often leads to cascading liquidations.
But wait, there’s more! Ether’s been struggling against Bitcoin (BTC), hitting multi-year lows. Some analysts predict a potential 30% drop against BTC, with ETH possibly bottoming out at $1,600. In the past week alone, ETH’s price has plummeted over 15%, trading well below its 200-day EMA since February.
The RSI is hovering at 31, nearly in oversold territory. This might hint at a local bottom and a possible price reversal. Yet, some market analysts are urging traders to pivot from ETH to higher-performing altcoins for better profit potential.
Trader Alex Krüger chimed in on March 12, suggesting that if you’re still clinging to ETH, it might be time to switch gears and invest in a higher beta altcoin.
In the ever-volatile world of crypto, nothing is set in stone. As always, do your research before making any investment moves. The crypto rollercoaster continues—hold on tight!
