Yuga exec warns about ‘true bear market’ Ether price as whales scramble

Yuga Labs’ vp of blockchain warned that Ether might drop as low as $200 in a protracted bear market, a 90% decline from its present price.

In a March 11 put up on X, the chief, recognized as “Quit,” pushed again towards analysts who recommended $1,500 as the attainable backside for Ether (ETH). Instead, Quit argued {that a} true bear market might see ETH fall considerably decrease, just like earlier market cycles.

“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets.”

The govt mentioned he’s in a “comfortable” place if issues go south. Quit advised followers to think about promoting their stash in the event that they’re uncomfortable with the asset taking place. 

ETH holders talk about potential price trajectory

Quit’s put up drew blended reactions from the crypto neighborhood. Some traders agreed that ETH might drop additional, whereas others mentioned such a state of affairs would require a serious systemic collapse.

One X person mentioned they set $1,800 as the underside. However, when the price reached $1,800, they contemplated whether or not it might go to $1,200. The ETH holder agreed with Quit’s prediction and mentioned, “It could very well go lower” if Bitcoin (BTC) goes to $66,000.

Meanwhile, one other X person disagreed with the prediction, saying it will solely be attainable if there have been a systemic collapse just like 2018. The ETH investor mentioned that, not like earlier cycles, Ether has been adopted by establishments and has a maturing ecosystem. 

“Positioning for both scenarios is what every smart investor should done, but being too bearish at the wrong time can cost just as much as being overly bullish,” they wrote.

Related: 4 issues should occur earlier than Ethereum can reclaim $2,600

ETH whales scramble towards liquidation risk

Quit’s sentiments got here as ETH whales scrambled to keep away from liquidation as Ether costs collapsed. On March 11, CoinGecko information confirmed that ETH costs went to a low of $1,791 on a 22% decline previously seven days. 

Because of the sharp price modifications, ETH whales moved thousands and thousands of {dollars} in ETH to guard their positions towards potential liquidation. 

Blockchain analytics agency Lookonchain flagged an ETH whale dumping $47.8 million and dropping $32 million to keep away from being liquidated. The whale nonetheless has over $64 million on the lending protocol Aave with a liquidation price of $1,316. 

Another ETH investor who had already used over $5 million in belongings to decrease the liquidation price to $1,836 began to be liquidated. Lookonchain mentioned the whale’s $121 million stability was being liquidated as the price dropped under $1,800. 

A whale account suspected of being linked to the Ethereum Foundation additionally used $56 million in ETH to keep away from liquidation amid the price drop. The handle deposited over 30,000 ETH to the Sky vault, bringing its liquidation price to $1.127.14. The account was later decided to be unrelated to the inspiration. 

Magazine: ETH whale’s wild $6.8M ‘mind control’ claims, Bitcoin energy thefts: Asia Express