On-Chain Data Analysis Reveals Risks in ETH Positions
Recent analysis conducted by DeFiLlama indicates that nearly $100 million in ether (ETH) positions are at significant risk of liquidation if the price experiences a decline of 15%. Traders in the Asian markets faced a tumultuous trading session on Monday, as the repercussions of U.S. President Donald Trump’s tariff policies reverberated globally.
As of Monday, the price of ETH has plunged by nearly 16%, trading just above $1,490, according to data from CoinDesk. The CoinDesk 20 index has similarly dropped by 13%, leading market participants to brace for potential further declines with the upcoming U.S. market open.
If ETH’s price were to fall another 15%, dropping below $1,274, it could trigger the liquidation of over $100 million in leveraged positions. It’s worth noting that on-chain liquidations tend to have more significant market impacts than those related to derivatives, as they involve the sale of spot assets directly onto the market. In the context of MakerDAO, a liquidated position is usually auctioned at a lower price, attracting traders who can then resell at a premium, thus increasing market supply and exerting additional sell pressure.
One notable wallet at risk of liquidation at a price of $1,418 faced several narrow escapes on Monday but managed to reduce its ETH holdings and repaid part of its outstanding DAI debt. Furthermore, DeFiLlama data suggests that if ETH’s price were to decline by 20%, an additional $36 million could be at stake.
The largest single ETH position currently holds $147 million in collateral, with a liquidation threshold set at $1,132. Lending protocols have been particularly hard-hit during the Monday trading session in Asia, with CoinGecko data revealing that this category has fallen by 17% in a single day, raising concerns about the sustainability of leverage within certain positions.
