Ethereum Faces Liquidation Avalanche as Price Dips Below $1,500
Ethereum markets are on edge as fresh tariff shocks ripple through global finance, placing nearly $100 million in leveraged ETH positions in the liquidation danger zone.
As of Monday, ETH is down more than 15%, trading just above $1,490, while broader crypto sentiment has soured under mounting macroeconomic stress triggered by President Trump’s sweeping new tariffs. The CoinDesk 20 Index has dropped 13% as investors brace for further losses during the upcoming U.S. trading session.
According to DeFiLlama’s on-chain data, if ETH falls another 15% and hits $1,274, a wave of liquidations totaling over $100 million could be unleashed across decentralized lending protocols. Unlike traditional derivatives markets, these on-chain liquidations involve real ETH being sold into the market, exerting downward pressure on spot prices.
One major wallet tied to MakerDAO narrowly avoided being liquidated at $1,418 after swiftly reducing its exposure and repaying a portion of its outstanding DAI. But with price volatility accelerating, many similar positions remain exposed.
A 20% drop from current prices could force an additional $36 million in liquidations, with the largest single position — backed by $147 million in ETH — vulnerable at $1,132, according to DeFiLlama.
The DeFi lending sector has been one of the hardest-hit areas during this downturn, with CoinGecko data showing a 17% decline in category-wide valuations on Monday alone.
Unless the U.S. open brings a relief rally, the Ethereum market could be staring down the barrel of a major cascade event.
