According to PeckShieldAlert, on January 9, 2025, a significant liquidation event occurred involving an address (0xa76b...e81c) which was liquidated for 1.49K WETH, valued at approximately $5.22 million, following a drop in ETH price to $3,200. As of January 7, this address had cumulatively supplied 573 WBTC and 1.49K WETH while borrowing 45.92 million USDT. Post-liquidation, the address now supplies 573 WBTC and borrows 38.37 million USDT.

The liquidation event indicates a substantial impact on the trading strategy of the address holder. The drop in ETH price to $3,200 triggered the liquidation due to the collateral ratio being breached. This suggests that the market's volatility and the address's leverage level were misaligned, leading to the forced liquidation. Analysts often consider such liquidation events as signals of market instability or over-leverage among traders, which can lead to further downward pressure on asset prices if similar conditions persist across the market.

From a technical analysis perspective, the liquidation occurred as ETH fell to $3,200. The decline is significant, given that ETH's previous support level was around $3,400 earlier in the week, as indicated by historical price data. The breach of this support level triggered automated liquidations on platforms that enforce strict collateral ratios. Moreover, trading volume for ETH increased by 15% on January 9, signaling heightened market activity and possibly contributing to the price decline. The liquidation of 1.49K WETH accounts for a substantial volume, further exacerbating the downward price pressure. On-chain metrics indicate that the number of unique addresses actively trading ETH also increased, suggesting that more traders were reacting to the price movements.