Since early May, Ethereum (ETH) recorded a positive move up to an all -time high (ATH) on May 12, $ 4,362.
However, in the wake of the decline in the price of Bitcoin (BTC), ETH indirectly received an unexpected impact, hitting below $ 2,000 last night.
Worse, this negative sentiment was also driven by a large number of ETHs owned by Tron Foundation CEO Justin Sun who almost melted away at midnight last night.
Based on Twitter tweets, account owner Philippe Castonguay revealed that Sun's 606,000 ETHs (over $ 1 billion) were almost liquidated but did not happen.
Many people did not follow this tweet. Shenyu, China's DeFi leader, said that JustinSun's liquidation of 606,000 Ethereum may cause ETH to fall below $ 1,000. https://t.co/O59SuP9V5Y pic.twitter.com/EBKn6C6ThI
- Wu Blockchain (@WuBlockchain) May 19, 2021
Apparently Sun simply rebalanced its assets by paying off debt for its $ 300 million loan to a loan protocol, Liquity USD (LUSD).
If liquidity occurs as expected, it is not impossible that the price of ETH has the potential to decline to $ 1,500 or $ 1,000.
However, Castonguay explained that the liquidation mechanism of the protocol can actually prevent the decline in the price of ETH because Liquity operates with entities known as stability providers.
At the same time, when the crypto market offers ‘discounts’, the CEO of Tron said he had bought a large number of Bitcoin and Ethereum assets: 4,145 BTC when the price hit $ 36,868 and 54,153 ETH at $ 2,509 per unit.
This article was written when these two assets were trading at the value of:
BTC: $ 38,154, down over 6%
ETH: $ 2,438, down nearly 22%
