Ethereum's price drop below $2,000 has pressured major holders, triggering liquidation risks across DeFi protocols.
Ethereum Price Drop and Its Consequences
The recent decline in Ethereum's price has created liquidation threats for major holders. ETH reached a low of $1,791.23, triggering multiple liquidation tiers. One whale lost $2.27 million in DAI debt, while the liquidated collateral was valued at $1.23 million.
Whales and Recovery Strategies
A whale attempted to buy the dip with a $30.8 million DAI purchase at $2,014, but the position remains underwater. Another dormant account added collateral just in time to avoid liquidation at $1,836 per ETH. Speculation that the Ethereum Foundation faced liquidation was debunked.
Adjusting Positions Amid Volatility
A major entity recently deposited 30,098 ETH, reducing its liquidation price to $1,127. In the last 24 hours, liquidations totaled $238 million, mainly affecting short positions. Speculation on short liquidations could ease pressure on DeFi vaults.
As liquidity clusters around key resistance levels, ETH may see short-term upward movement, but caution remains due to centralized derivative trading.
