Yuga Labs’ vice president of blockchain warned that Ether could drop as low as $200 in a prolonged bear market, a 90% decline from its current price.
In a March 11 post on X, the executive, known as “Quit,” pushed back against analysts who suggested $1,500 as the possible bottom for Ether (ETH). Instead, Quit argued that a true bear market could see ETH fall significantly lower, similar to previous market cycles.
“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets.”
The executive said he’s in a “comfortable” position if things go south. Quit told followers to consider selling their stash if they’re uncomfortable with the asset going down.
ETH holders discuss potential price trajectory
Quit’s post drew mixed reactions from the crypto community. Some investors agreed that ETH could drop further, while others said such a scenario would require a major systemic collapse.
One X user said they set $1,800 as the bottom. However, when the price reached $1,800, they contemplated whether it could go to $1,200. The ETH holder agreed with Quit’s prediction and said, “It could very well go lower” if Bitcoin (BTC) goes to $66,000.
Meanwhile, another X user disagreed with the prediction, saying it would only be possible if there were a systemic collapse similar to 2018. The ETH investor said that, unlike previous cycles, Ether has been adopted by institutions and has a maturing ecosystem.
“Positioning for both scenarios is what every smart investor should done, but being too bearish at the wrong time can cost just as much as being overly bullish,” they wrote.
ETH whales scramble against liquidation threat
Quit’s sentiments came as ETH whales scrambled to avoid liquidation as Ether prices collapsed. On March 11, CoinGecko data showed that ETH prices went to a low of $1,791 on a 22% decline in the past seven days.
Because of the sharp price changes, ETH whales moved millions of dollars in ETH to protect their positions against potential liquidation.
Blockchain analytics firm Lookonchain flagged an ETH whale dumping $47.8 million and losing $32 million to avoid being liquidated. The whale still has over $64 million at the lending protocol Aave with a liquidation price of $1,316.
Another ETH investor who had already used over $5 million in assets to lower the liquidation price to $1,836 started to be liquidated. Lookonchain said the whale’s $121 million balance was being liquidated as the price dropped below $1,800.
A whale account suspected of being linked to the Ethereum Foundation also used $56 million in ETH to avoid liquidation amid the price drop. The address deposited over 30,000 ETH to the Sky vault, bringing its liquidation price to $1,127.14. The account was later determined to be unrelated to the foundation.