ETH slips below $2k, traders spooked by liquidation rumors

ETH has dropped by more than 8% while traders tire rumors on social networks saying that the Ethereum Foundation is liquid for when the price falls to $ 1,100.

Rumors have circulated among crypto traders on social networks X platformMany specifying that the Ethereum Foundation could face a liquidation of up to $ 100 million if the price of Ethereum (Ethn) fall further and reaches $ 1,100.

“If the Ethereum Foundation is liquidated at $ 1,100 to us for the cycle for the cycle, this ends the simulation,” said an X account.

“The Ethereum Foundation liquidates $ 1,100 will be the FTX moment of this year,” said a merchant on X. However, the account also added that the EF “would most likely add” guarantees “if it is close to the liquidation.

At the time of the press, the Ethereum Foundation or its co-founders directly treated these liquidation rumors of $ 100 million. However, the token was on a downward trend. Last week, ETH fell by almost 10% last week and 28% in the last month.

According to data From crypto.News, Eth fell below the $ 2,000 threshold. It is currently down more than 8% and is negotiated at a price of $ 1,889. Yesterday, on March 10, it fell even lower up to $ 1,791. The last time ETH fell below $ 2,000 was at the end of 2023.

What triggered rumors of ETH liquidation?

Most of the trader speculations surrounding a possible liquidation of the Ethereum Foundation have germinated due to an ETH deposit of 30,098 in the safe by a portfolio suspected of belonging to the Ethereum Foundation. Many have seen this as a sign that the EF was preparing to liquidate its assets. However, the developers of Ethereum Eric.eth and Sassal have denied that the portfolio addressed the deposit of 30,098 ETH to maker belonging to the Ethereum Foundation.

A Coult Maker is an intelligent contract used in the Makerdao Sur Ethereum ecosystem which allows users to create and manage guaranteed debt positions. The portfolio currently holds 100,394,447 ETH in warranty, with a debt position of 78,035,224.7182 DAI and a liquidation price of $ 1,127.065.

Although the portfolio was initially reported by Arkham Intelligence As having links with the Ethereum Foundation, data on the chain show that the initial funding for the portfolio can be traced to a merchant named Jonny.eth, a first Ethereum investor rather than at EF itself.

A possible reason why it was reported as EF portfolio is the fact that it received a transfer of 4 million DAI from the ETH Sale of the Ethereum Foundation in May 2022.