Ethereum whale loses $106 million amid price plunge

An Ethereum whale suffered a massive liquidation of $106 million on the decentralised finance (DeFi) lending platform Sky as Ether (CRYPTO:ETH) prices dropped by 14% on April 6.

The investor lost 67,570 ETH when the collateralised debt position fell below the required overcollateralisation ratio of 150%, reaching 144%, according to Maker Vaults explorer DeFi Explore and Lookonchain.

Sky (CRYPTO:SKY), formerly known as Maker, allows users to borrow the stablecoin DAI (CRYPTO:DAI) by providing ETH as collateral.

The protocol enforces liquidation when the value of collateral drops below the minimum required ratio.

During liquidation, the platform seizes and auctions off the collateral to repay borrowed DAI plus fees.

Any remaining collateral is returned to the borrower.

Spot On Chain reported that another whale, who supplied 56,995 wrapped ETH worth $91 million to borrow DAI, is nearing liquidation.

This highlights the risks faced by leveraged traders in volatile markets.

The broader crypto market has been experiencing significant turmoil, with Ethereum prices falling to $1,547—the lowest since October 2023.

This decline follows a market-wide sell-off triggered by geopolitical tensions and U.S. tariff policies.

Ethereum remains down by 68% from its all-time high in 2021.

According to CoinGlass, nearly $1 billion in liquidations occurred within the past 24 hours, impacting over 320,000 traders.

ETH positions accounted for most of these liquidations.

Analysts warn that further price drops could lead to additional liquidations unless borrowers increase their collateral.

At the time of reporting, the Ethereum (ETH) price was $1,447.43.