- Ethereum whale loses $106 million as Ether price drops and triggers automatic liquidation on Sky platform.
- Crypto market cap falls to $2.6 trillion as Bitcoin and altcoins see sharp declines across the board.
- Some whales continue buying more ETH despite heavy market losses and falling Ethereum market dominance.
An Ethereum whale suffered a major loss when 67,570 ETH, worth around $106 million, were liquidated on Sky. This happened after Ether’s price plunged by nearly 14% on April 6, sliding from above $1,800 to around $1,500. The steep price fall triggered the automatic liquidation of the investor’s collateralized debt position.
Sky, previously known as Maker, allows users to deposit cryptocurrencies like ETH to borrow DAI, its stablecoin. The platform enforces overcollateralization, usually requiring at least $150 in ETH for every 100 DAI borrowed. As the market dipped, the protocol tracked the ETH collateral value against the borrowed amount in real time.
When the value of ETH fell, the whale’s collateral ratio dropped to 144%, slipping below the required threshold. This automatic trigger led to the liquidation of the whale’s position. The data, reported by Lookonchain, shows how volatile market swings continue to challenge even the largest crypto holders.
Wider Crypto Market Suffers Heavy Losses
The negative sentiment within Ethereum spread throughout the entire crypto market during this time. The Bitcoin price dropped below $78,000 due to investor worries about the potential aggressive tariffs connected to President Trump’s political stance. The intense pressure from crypto market events reduced the market capitalization by approximately 8% until it reached $2.6 trillion.
Other major cryptocurrencies also recorded sharp declines. XRP dropped by 11% within 24 hours, falling below $1.9. Meanwhile, BNB slid 6% to reach $564. Solana, Dogecoin, and Cardano each posted declines of around 10%. TRON experienced a smaller, yet notable, drop of 3%.
The ETH/BTC trading pair reached 0.021 on April 6 marking its most diminished level since March 2020. Market observers reported that bearish movements exhibited greater strength than during previous weeks of the month thus damaging investor sentiment.
Whales React Differently Amid Sell-Off
While some investors rushed to sell, others seized the opportunity to buy at lower prices. Notably, Lookonchain reported a whale known as “7 Siblings” bought 24,817 ETH, spending around $42 million. This brought their total ETH holdings to over 1.2 million, valued at roughly $1.9 billion.
Since early February, this whale has accumulated 103,543 ETH, investing nearly $230 million. However, they currently face an unrealized loss of about $64 million. Meanwhile, other Ethereum whales reportedly acquired over 130,000 ETH when prices dipped below $1,800, according to IntoTheBlock.
Ethereum’s market dominance has slipped below 9.4%, its lowest in five years. Investor sentiment continues shifting, with Bitcoin’s growing dominance near 60%, challenging Ethereum’s position as the leading altcoin.
