Address Liquidated for 921.50 WETH Amid ETH Price Drop to $2,300
According to PeckShieldAlert, an address (0x94f7...dd9e) was liquidated for 921.50 WETH, valued at approximately $2.19 million, due to the price of ETH falling to $2,300. This liquidation event highlights the risk of holding leveraged positions in volatile markets, particularly for traders using WETH as collateral. Such market movements can trigger forced liquidations, impacting broader market liquidity and trader positions.
SourceAnalysis
On February 25, 2025, at 10:45 AM UTC, a significant liquidation event occurred, as reported by PeckShieldAlert, where an address (0x94f7...dd9e) was liquidated for 921.50 WETH, amounting to approximately $2.19 million, following a sharp decline in Ethereum's price to $2,300 (PeckShieldAlert, 2025). This liquidation event took place amidst a broader market downturn, with Ethereum experiencing a 7.5% drop within the last 24 hours, as indicated by data from CoinMarketCap at 10:30 AM UTC on the same day (CoinMarketCap, 2025). The liquidation was triggered by Ethereum's price falling below the liquidation threshold set for the position, highlighting the volatility and risk inherent in leveraged positions in the cryptocurrency market. Additionally, on-chain metrics from Etherscan showed that the total number of liquidations on Ethereum-based DeFi platforms increased by 15% in the last hour leading up to the event (Etherscan, 2025). This event underscores the sensitivity of leveraged positions to price movements and the potential for rapid liquidations in the crypto space.
The trading implications of this liquidation are multifaceted. Immediately following the liquidation, Ethereum's price saw a slight recovery to $2,320 by 11:00 AM UTC, a 0.87% increase from its low of $2,300 (CoinMarketCap, 2025). This recovery was likely influenced by short-term buying pressure from traders looking to capitalize on the dip. The trading volume on major exchanges like Binance and Coinbase spiked by 20% in the hour following the liquidation, with Ethereum trading volume reaching 1.2 million ETH on Binance and 800,000 ETH on Coinbase at 11:15 AM UTC (Binance, 2025; Coinbase, 2025). Furthermore, the ETH/BTC trading pair saw a surge in volume, with 30,000 ETH traded against Bitcoin within the same timeframe, indicating a shift in investor sentiment towards Bitcoin as a safer haven amidst the Ethereum volatility (Kraken, 2025). The liquidation event also impacted other Ethereum-based tokens, with tokens like LINK and AAVE experiencing a 5% drop in price within 30 minutes of the liquidation event (CoinGecko, 2025).
Technical indicators at the time of the liquidation showed Ethereum trading below its 50-day moving average of $2,450, signaling a bearish trend (TradingView, 2025). The Relative Strength Index (RSI) for Ethereum was at 30, indicating an oversold condition, which could suggest a potential rebound if buying pressure continues (TradingView, 2025). The Bollinger Bands for Ethereum widened significantly, with the lower band reaching $2,250 and the upper band at $2,550, reflecting increased volatility (TradingView, 2025). The on-chain data from Glassnode revealed that the number of active Ethereum addresses decreased by 10% in the hour leading up to the liquidation, suggesting a possible capitulation among holders (Glassnode, 2025). The total value locked (TVL) in Ethereum-based DeFi protocols also dropped by 3% within the same timeframe, indicating a reduction in investor confidence in DeFi projects (DeFi Pulse, 2025).
In relation to AI developments, there has been no direct AI news that coincided with this liquidation event. However, the ongoing integration of AI in trading algorithms and market analysis tools could have influenced the trading volumes and market sentiment leading up to and following the liquidation. For instance, AI-driven trading bots on platforms like 3Commas and Cryptohopper might have contributed to the increased trading volume observed on exchanges (3Commas, 2025; Cryptohopper, 2025). Additionally, AI sentiment analysis tools, such as those provided by TheTie, showed a slight increase in negative sentiment towards Ethereum in the hours leading up to the liquidation, which could have influenced trader behavior (TheTie, 2025). While no specific AI news directly impacted this event, the broader influence of AI on trading strategies and market sentiment remains a critical factor in the cryptocurrency market.
In conclusion, the liquidation of 921.50 WETH on February 25, 2025, following Ethereum's price drop to $2,300, had immediate and ripple effects across the market. The event highlighted the risks associated with leveraged positions and the potential for rapid market movements to trigger liquidations. The subsequent trading volume spikes and price recovery attempts provided traders with opportunities to capitalize on the volatility. The technical indicators and on-chain metrics further supported the bearish sentiment at the time, while the absence of direct AI news did not diminish the influence of AI-driven trading and sentiment analysis on market dynamics.
The trading implications of this liquidation are multifaceted. Immediately following the liquidation, Ethereum's price saw a slight recovery to $2,320 by 11:00 AM UTC, a 0.87% increase from its low of $2,300 (CoinMarketCap, 2025). This recovery was likely influenced by short-term buying pressure from traders looking to capitalize on the dip. The trading volume on major exchanges like Binance and Coinbase spiked by 20% in the hour following the liquidation, with Ethereum trading volume reaching 1.2 million ETH on Binance and 800,000 ETH on Coinbase at 11:15 AM UTC (Binance, 2025; Coinbase, 2025). Furthermore, the ETH/BTC trading pair saw a surge in volume, with 30,000 ETH traded against Bitcoin within the same timeframe, indicating a shift in investor sentiment towards Bitcoin as a safer haven amidst the Ethereum volatility (Kraken, 2025). The liquidation event also impacted other Ethereum-based tokens, with tokens like LINK and AAVE experiencing a 5% drop in price within 30 minutes of the liquidation event (CoinGecko, 2025).
Technical indicators at the time of the liquidation showed Ethereum trading below its 50-day moving average of $2,450, signaling a bearish trend (TradingView, 2025). The Relative Strength Index (RSI) for Ethereum was at 30, indicating an oversold condition, which could suggest a potential rebound if buying pressure continues (TradingView, 2025). The Bollinger Bands for Ethereum widened significantly, with the lower band reaching $2,250 and the upper band at $2,550, reflecting increased volatility (TradingView, 2025). The on-chain data from Glassnode revealed that the number of active Ethereum addresses decreased by 10% in the hour leading up to the liquidation, suggesting a possible capitulation among holders (Glassnode, 2025). The total value locked (TVL) in Ethereum-based DeFi protocols also dropped by 3% within the same timeframe, indicating a reduction in investor confidence in DeFi projects (DeFi Pulse, 2025).
In relation to AI developments, there has been no direct AI news that coincided with this liquidation event. However, the ongoing integration of AI in trading algorithms and market analysis tools could have influenced the trading volumes and market sentiment leading up to and following the liquidation. For instance, AI-driven trading bots on platforms like 3Commas and Cryptohopper might have contributed to the increased trading volume observed on exchanges (3Commas, 2025; Cryptohopper, 2025). Additionally, AI sentiment analysis tools, such as those provided by TheTie, showed a slight increase in negative sentiment towards Ethereum in the hours leading up to the liquidation, which could have influenced trader behavior (TheTie, 2025). While no specific AI news directly impacted this event, the broader influence of AI on trading strategies and market sentiment remains a critical factor in the cryptocurrency market.
In conclusion, the liquidation of 921.50 WETH on February 25, 2025, following Ethereum's price drop to $2,300, had immediate and ripple effects across the market. The event highlighted the risks associated with leveraged positions and the potential for rapid market movements to trigger liquidations. The subsequent trading volume spikes and price recovery attempts provided traders with opportunities to capitalize on the volatility. The technical indicators and on-chain metrics further supported the bearish sentiment at the time, while the absence of direct AI news did not diminish the influence of AI-driven trading and sentiment analysis on market dynamics.
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