A crypto whale with long Ethereum (ETH) position seems to be facing a big dilemma, according to on-chain analytics firm Lookonchain.
The whale deposited $11 million in assets, including Ethereum, on Aave, and is long on these assets; the whale has borrowed $8.45 million in stablecoins and is now facing near-liquidation risk.
Since the beginning of the week, the cryptocurrency market has been on the decline. The minutes of the most recent FOMC meeting released earlier this week revealed policymakers were broadly in agreement that rates would likely need to be raised one more time before the monetary tightening cycle ended.
Adding further to losses, the Consumer Price Index (CPI) for September gained 0.4%, exceeding economist expectations of 0.3% and the prior month's 0.6%. In September, the CPI grew 3.7% year on year, compared to 3.7% in August.
The core CPI, excluding food and energy costs, grew by 0.3% in September, compared to $0.6% the previous month. Year on year, core CPI was 4.1%, compared to the 4.1% expected and 4.3% in August. Ethereum sustained earlier losses following the news and is now down 0.31% to $1549.
In the last 24 hours, 21,834 traders were liquidated. The greatest single liquidation order occurred on OKX with the OKX ETH-USDT-SWAP pair, with a value of $2.56 million.
According to CoinGlass data, liquidations on the general crypto market totaled $52.79 million in the last 24 hours. Long positions accounted for $36.46 million, while short positions accounted for only $16.41 million.
Kaiko, a cryptocurrency research firm, stated that ETH's open interest has increased since the beginning of September. Funding rates remain neutral to negative, indicating a lack of direction on the market.