The second-largest cryptocurrency by market value, Ethereum, has been rising remarkably during the past several months.
Expectations about the imminent Dencun upgrade and growing institutional interest drove Ethereum’s price to unprecedented heights, with the cryptocurrency crossing $4,000 for the second time in history.
Traders and investors have been closely monitoring Ethereum’s price movements amidst this positive momentum, trying to figure out how to capitalise on the cryptocurrency’s upward trend. But because the cryptocurrency market is so unstable, things may change very fast, bringing with it significant profits or losses for traders.
According to PeckShield Alert, a liquidation event has taken place against the stunning ascent of Ethereum.
https://x.com/PeckShieldAlert/status/1767131649484185920?s=20
Under the pseudonym “nakamotosatoshi.eth,” a trader was utilising Compound, a decentralised lending platform that lets users lend and borrow cryptocurrency assets using cTokens, which are the main way users communicate with the Compound Protocol.
But when ETH shot up to $4,030, the trader’s collateral could no longer support the loan amount. This led to a liquidation event where the trader was paid $2.13 million in cDAI (93.16 million).
As of this writing, ETH has reached intraday highs of $4,054, up 2.43% over the previous 24 hours to $4,045 in value. ETH is now 17.47% below its all-time high of $4,891, attained in November 2021, despite the recent price increase.
As the Dencun update, which is expected to include several Ethereum Improvement Proposals (EIPs), including EIP-4844, which provides “proto-danksharding,” goes live on Ethereum in the next 48 hours, there are a lot of people anticipating it.
The Dencun update, which is slated for March 13, will provide blobs, which should drastically lower L2s’ expenses associated with data availability.
