The crypto market is in a state of chaos as Ethereum takes a major hit. In the past 24 hours, ETH has dropped over 14%, currently trading around $1,547. This steep decline comes amid broader market turbulence triggered by U.S. tariff measures and other economic uncertainties.
Liquidations on the Rise
The price drop has had a domino effect on decentralized finance (DeFi) lending platforms. One major incident occurred on the Sky lending platform, according to Maker Vaults explorer DeFi, where a large Ethereum whale lost 67,570 ETH worth about $106 million as its collateral ratio fell below the required 150% as per data.
Sky’s automated system, which monitors positions, forced a liquidation when the ratio hit 144%. In simple terms, when the price of ETH dropped, the collateral couldn’t cover the borrowed amount, leading to the forced sale of the whale’s assets.
Another whale, who had supplied around 56,995 wrapped ETH valued at approximately $91 million, is also on the brink of liquidation. According to CoinGlass, almost $1 billion in liquidations occurred across the market in the past day, with ETH positions being particularly affected.
Wider Market Impact
This volatile period has not only affected individual traders but also the overall market sentiment. Bitcoin has also been hit hard, adding to the fear and uncertainty among investors. As ETH continues to drop, its price now stands 68% lower than its all-time high in 2021, raising concerns that the downturn might worsen unless traders can stabilize their positions by adding more collateral.
Right now, Ethereum is moving into weak hands after breaking below key supports like $1,650 and $1,620. It’s struggling to recover, facing strong resistance near $1,600 and $1,675. Unless bulls step in soon, ETH risks dipping further toward $1,420. In short, Ethereum is stuck in a bearish zone, with weak buying interest and technical signals suggesting that another dip could be coming unless a solid bounce happens soon.
ETH Current Market Sentiment
Right now, the market’s shaken. Ethereum’s sharp drop and the huge wave of liquidations are signs that confidence is on edge. This isn’t just crypto—it’s part of a broader pullback in risk markets. With ETH getting hit hard and leveraged, DeFi positions unwinding, things feel unstable. Everyone’s watching to see if ETH can hold the line and spark a recovery, but honestly, there’s still a lot of caution in the air. Until we see some strength come back, most investors are staying on the sidelines, waiting this out.
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