Ether's Freefall Below $1.9K Roils DeFi, Jeopardizes Crypto Loan Backed by $130M in ETH

Ethereum's ETH has been spiraling on Monday, jeopardizing a large decentralized finance (DeFi) loan on lending platform Sky (formerly Maker) of being liquidated.
The borrower in danger took out a $74 million loan in DAI stablecoin by pledging 65,680 ETH as collateral, worth nearly $130 million earlier today, per a Sky vault data dashboard.
In an already weak crypto prices, ETH plunged nearly 10% during the day to $1,820, below the loan's liquidation level slightly above $1,900.
Blockchain data by Debank shows that the borrower withdrew 2,000 ETH, worth nearly $4 million at current prices, from crypto exchange Bitfinex earlier Monday and deposited the assets to the Maker vault, propping up the loan's collateral to avoid liquidation.
Following the deposit, the liquidation level for the loan stood at around $1,875 price of ETH, which was still higher than the latest price of ETH.