Ethereum Price Today: $1,510
- Short-term ETH holders dominated recent selling activity, realizing over $500 million in losses on Monday.
- Increasing DeFi liquidations could accelerate ETH's decline, potentially triggering further liquidations.
- If ETH breaks below the descending channel's lower boundary, it may fall toward $1,000.
Ethereum (ETH) crashed over 27% in the past 48 hours, briefly hitting a two-year low of $1,410 before recovering to $1,500 on Monday. According to Coinglass data, this drop triggered $257.87 million in ETH derivatives market liquidations during this period.
On-chain data reveals most investors are capitulating, with ETH realizing losses exceeding $500 million, as noted by Santiment. Recent sell-offs stem from coins purchased within the last month, highlighting short-term holders' strong reaction to price declines.
Additionally, coins held for 1–2 years have begun selling, albeit slower. If this group's selling pressure intensifies, it could trigger further ETH declines, as most buy-the-dip activity flows to addresses linked to them.
👉 Why Ethereum's DeFi liquidations matter
ETH Faces Additional Downside Pressure if DeFi Liquidations Persist
Rising DeFi protocol liquidations have accelerated ETH's drop.
Lookonchain data shows Sky (formerly Maker) liquidated a whale's collateral of 53,074 ETH (worth $74 million at the time). Sky enables users to borrow DAI stablecoins using ETH as collateral. When collateral value falls below a threshold, the protocol automatically liquidates positions.
Another whale added 10,000 ETH and 3.52 million DAI to their 220,000 ETH collateral, lowering their liquidation price to $1,119. If ETH drops below $1,119, this whale risks losing all collateral.
Similar liquidations occurred on Aave, which saw over $162 million in liquidated collateral on Monday per @KARTOD's Dune dashboard.
Ethereum Price Forecast: ETH Targets $1,000 Under Mounting Bearish Pressure
Ethereum struggles near the $1,522 support level after rebounding from the lower boundary of a descending channel active since December 2022. A break below this channel could push ETH toward $1,000.
Resistance Levels:
- $1,800 (reinforced by a key downtrend line)
Technical Indicators:
- MACD histogram bars below neutral
- RSI in oversold territory
This suggests bearish dominance but hints at reversal potential.
Ethereum FAQs
What is Ethereum?
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Its native currency, Ether (ETH), is the second-largest cryptocurrency by market cap and the leading altcoin. The network hosts solutions like DeFi, GameFi, NFTs, and DAOs.
How do smart contracts work?
Smart contracts are self-executing agreements stored on-chain. They automate actions when predefined conditions are met, eliminating intermediaries.
What is Ethereum staking?
Staking involves locking crypto assets to earn rewards while securing the network. Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on September 15, 2022 ("The Merge"). PoS reduces energy use by replacing miners with validators who stake ETH.
👉 Master Ethereum staking strategies
What is gas?
Gas fees pay for Ethereum transactions. During congestion, fees spike, prompting validators to prioritize higher-paying transactions.