ETH fell more than 8% after traders became weary of rumors in social media claiming that Ethereum Foundation was going to liquidate once the price dropped below $1,100.
Social media has been filled with rumors about crypto traders platform XMany speculate that Ethereum’s price could drop to as low as $100 million, causing the Ethereum Foundation (ETH( ) drops further to $1,100.
“If the Ethereum Foundation gets liquidated at $1,100 to bottom us for the cycle surely that ends the simulation,” One X-rated account
“The Ethereum Foundation getting liquidated at $1,100 will be this year’s FTX moment,” X.com quoted a trader. The account added, however, that the EF will most likely be a EF. “just add collateral” When it’s close to liquidation.
The Ethereum Foundation and its founders did not directly address these 100m USD liquidation rumors at the time of publication. Tokens have been trending downwards. In the last week, ETH fell by almost 10% and has fallen 28% over the course of the month.
As per data Crypto.news reports that ETH is now below $2,000 in price. It has fallen more than 8% in the last few days and currently trades at $1 889. It fell to $1,791 yesterday. Last time ETH dropped below $2,000, it was late 2023.
What sparked ETH Liquidation Rumors?
The majority of trader speculation about a potential Ethereum Foundation liquidation was sparked by the deposit of 30,098 Ethereum into the Maker vault from a wallet that traders suspected belonged to the Ethereum Foundation. This was interpreted by many as a sign the EF would be liquidating its assets. Ethereum developers Eric.eth & Sassal.eth disagree. denied This wallet is owned by Ethereum Foundation and the address used to deposit 30,098 ETH into Maker.
Maker Vaults are smart contracts used within the MakerDAO eco-system on Ethereum. They allow users to manage and create collateralized debt. This wallet holds 100,394.447 USD as collateral with a DAI debt of 78 035,224.7182 and $1,127.065 liquidation price.
The wallet had been flagged initially by Arkham Intelligence On-chain data indicates that the initial funding of the wallet was provided by a trader called jonny.eth. This early Ethereum investor, rather than the EF, is responsible for this.
It could be because it had received a transfer of 4,000,000 DAI from the Ethereum Foundation ETH sale in May 2022.
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Source: crypto.news
