The cryptocurrency market is agitated as Yuga Labs’ vice president of blockchain, known as “Quit,” has warned of a potentially severe downturn for Ether (ETH). The executive suggests that Ether might plunge to as low as $200 in an extended bear market—an alarming 90% drop from its current levels. Drawing parallels with previous market cycles, Quit dismissed predictions pegging a bottom at $1,500 and instead indicated a potential range of $200-$400.
Quit expressed confidence in his own position amidst market uncertainties and advised others uncomfortable with potential declines to consider selling. His statement triggered widespread discussion among investors, revealing a divide between those who acknowledge the risk of further downturns and those who doubt such an extreme scenario without a significant market collapse akin to 2018.
As discussions unfold, Ether whales, large holders of cryptocurrency, are scrambling to mitigate risks of liquidation brought on by Ether’s recent 22% price slump over seven days. On March 11, data from CoinGecko recorded a concerning dip to $1,791. In response, whales have been mobilizing substantial amounts of Ether to lower their liquidation prices and protect their positions. For instance, one transaction involved a whale moving $47.8 million to avert a $32 million liquidation loss.
Another notable transaction involved an account, mistakenly linked to the Ethereum Foundation, which deposited 30,000 ETH valued at $56 million. This deposit aimed to prevent forced liquidation by adjusting the liquidation threshold to $1,127.14. Although initially thought to be connected to the Ethereum Foundation, subsequent investigation clarified it was not.
The unfolding scenario underscores the delicacy of the crypto market and the strategic maneuvers undertaken by major stakeholders to weather potential market turbulence.
