Ethereum (ETH) Might See Further Decline As Two Whales At Risk Of Liquidation

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ETH on the Brink of Disaster: Will it Fall Below $1,800? 🤯

<a href="https://zarusd.com/eth-usd/">Ethereum</a> (ETH) Might See Further Decline As Two Whales At Risk Of Liquidation

Ethereum (ETH), that darling of the crypto world, is in a bit of a pickle, isn’t it? 😳 Dropping around 3% in the last 24 hours and slipping below the $1,800 level, it’s a wonder it’s still standing. This decline is putting several large leveraged positions at risk, including two massive whale vaults on Maker that collectively hold over $235 million worth of ETH. One wonders, dear reader, if these whales will be singing the blues soon? 🐳

With on-chain indicators flashing warning signs and technical levels being tested, the stakes are rising for both bulls and bears. As ETH hovers near critical support, the coming days could prove pivotal for its short-term price trajectory. Ah, but will it be a bull or a bear that emerges victorious? Only time will tell, darling! 🕰️

Ethereum Whales Could Get Liquidated

Ethereum has dropped around 3% in the past 24 hours, slipping below the $1,900 mark once again. This decline is putting pressure on large leveraged positions within the DeFi ecosystem. One can almost hear the sound of whales crying out in distress, can’t you? 🐳

According to on-chain data from Lookonchain, two major whale vaults on Maker—one of the leading decentralized lending protocols—are now approaching critical levels. These vaults hold 125,603 ETH, valued at approximately $235 million. With ETH’s price nearing their liquidation thresholds, both vaults are at risk of being forcibly closed if the downward trend continues. Oh, the humanity! 🤯

In Maker’s system, users can deposit ETH into vaults as collateral to borrow the DAI stablecoin. To avoid liquidation, the collateral must stay above a certain health ratio—essentially a safety buffer. Ah, but what happens when that buffer gets too low? The protocol automatically sells off the collateral to cover the debt. In this case, the health ratio of the whale positions has fallen to just 1.07, dangerously close to the minimum threshold. It’s a bit like playing a game of Jenga, isn’t it? 🤯

One vault faces liquidation at an ETH price of $1,805, and the other at $1,787. If ETH continues to dip, these vaults could trigger significant sell pressure, potentially accelerating the downward move. Oh, dear reader, it’s a bit like watching a train wreck in slow motion, isn’t it? 🚂

Indicators Suggest The Downtrend Could Continue

Ethereum’s recent price drop has pushed its Relative Strength Index (RSI) back into oversold territory, currently sitting at 24.37. Just three days ago, the RSI was at 58.92, indicating how quickly sentiment has shifted. Ah, but what does it all mean, darling? 🤔

The RSI is a momentum indicator that measures the speed and change of price movements, with readings below 30 typically signaling that an asset is oversold. It’s a bit like a game of musical chairs, isn’t it? 🎵

While this suggests that Ethereum may be due for a short-term bounce or relief rally, historical data shows that RSI can remain oversold for extended periods—or even drop further—if bearish momentum stays strong. Ah, but what’s a little thing like momentum when you’re dealing with the whims of the market, eh? 🤷‍♀️

Ethereum’s Directional Movement Index (DMI), which signals a strong downtrend, adds to the bearish outlook. The Average Directional Index (ADX), which measures the strength of a trend, surged to 38.6 from 23.47 just a day ago, indicating growing momentum behind the current move. It’s a bit like a snowball rolling down a hill, isn’t it? 🏂

Meanwhile, the +DI (positive directional indicator) has fallen to 10.6, while the -DI (negative directional indicator) has spiked to 40.23, showing that sellers are firmly in control. Ah, but what’s a little thing like control when you’re dealing with the unpredictable world of crypto, eh? 🤷‍♀️

This combination—rising ADX, high -DI, and falling +DI—typically suggests an intensifying bearish trend, meaning Ethereum’s price could remain under pressure in the near term despite already being technically oversold. It’s a bit like being stuck in a never-ending nightmare, isn’t it? 😴

Will Ethereum Fall Below $1,800 Soon?

If Ethereum’s downtrend continues, the next key level to watch is the support at $1,823. A break below this level could quickly push the price down toward $1,759—a move that would trigger the liquidation of two major whale vaults on Maker, which are already hovering near their thresholds. Oh, dear reader, it’s a bit like watching a ticking time bomb, isn’t it? ⏰

These potential liquidations could amplify sell pressure, making it even harder for Ethereum price to stabilize in the short term. Given the current bearish momentum and weak technical indicators, this scenario remains a real risk if bulls fail to step in. Ah, but what’s a little thing like risk when you’re dealing with the unpredictable world of crypto, eh? 🤷‍♀️

However, if sentiment shifts and the trend reverses, Ethereum could regain ground and test the resistance level at $1,938. Ah, but what’s a little thing like sentiment when you’re dealing with the whims of the market, eh? 🤷‍♀️

Breaking above that could open the path toward $2,104, a level that has previously acted as both resistance and support. Should buying momentum strengthen further, ETH might continue climbing toward $2,320 and potentially even $2,546. Ah, but what’s a little thing like potential when you’re dealing with the unpredictable world of crypto, eh? 🤷‍♀️

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2025-03-29 16:56