Investing.com – It could be that the Ethereum community is experiencing its own TerraUSD crash moment. The DeFi Lido platform has experienced worrying irregularities over the past 24 hours.
Ether-linked Lido Staked Ethereum (stETH) token lost its 1:1 connection. It now only quotes $1,667, while the is trading at $1,742.
The starting point for this growing gap is a growing imbalance in one of Curve Finance’s liquidity pools. On Twitter (NYSE:), it is already assumed that the situation will get even worse in the coming hours.
The starting point for this unease is Alameda, one of the largest holders of stETH. This crypto-merchant got rid of all his stock of tokens to exchange them for ETH. These were tokens worth $1.5 billion. In the worst case, this could lead, as in the case of , to a panicked escape from the stablecoin.
To complicate matters, other big players in stETH include venture capitalists like Jump and Three Arrows. These are therefore the same actors who were involved in the LUNA crash.
There are defibrillator platforms that stETH owns for several billion dollars. They have promised their clients that they will be able to earn returns with their deposits, but the house of cards on which everything rests is already beginning to falter in disturbing ways.
One such operator is Celsius, which has a $1.5 billion stake in stETH. In the past, the company has already lost quite a bit of cash due to hacks, exploits and, last but not least, the Terra crash. The Celsius token has already lost over 21% and it is only a matter of time before customer payments are halted. By then the flash in the pan will be fully ignited and expected to spread at lightning speed via social media.
Ethereum Technical Benchmarks
Ethereum is about to retest the recent low of $1708 and the momentum argues for a move below that level.
The next notable support is then again in the area of the psychological threshold of 1500 dollars. It is only at this level that the bulls should once again hope to find some calm.
On the other side is resistance with the 23.6 percent Fibo retracement at $2004, reinforced by the psychological mark of $2000.
By Marco Oehrl