TLDR
- ETH price dropped below $1600, falling 13-14% in 24 hours
- The global crypto market cap decreased by 6% ($160 billion wiped out)
- A major Ethereum whale was liquidated for $106 million on Sky DeFi platform
- Another whale with $91 million in wrapped ETH is on the verge of liquidation
- Nearly 320,000 traders have been liquidated over 24 hours, totaling almost $1 billion
Ethereum’s price has fallen sharply below the $1600 mark, currently trading at around $1,569. The second-largest cryptocurrency by market cap has plummeted over 13% in the past 24 hours, dragging the broader crypto market down with it.
The global cryptocurrency market capitalization dropped by more than 6% in a single day, now standing at $2.51 trillion. This represents a staggering $160 billion erased from the market in just hours.
Trading volume for Ethereum has surged nearly 300%, indicating panic selling and large market movements. The current market capitalization of Ethereum stands at approximately $189.58 billion.
Whale Liquidations Rock DeFi Markets
The price crash has triggered major liquidations across decentralized finance (DeFi) platforms. One Ethereum whale lost 67,570 ETH worth around $106 million when their position was liquidated on Sky, a DeFi lending protocol that rebranded from Maker in August.
The liquidation occurred when the collateralization ratio fell to 144% as ETH prices plummeted. Sky lending protocol requires users to maintain a minimum collateralization ratio, typically 150% or higher, meaning users need to deposit at least $150 worth of ETH to borrow 100 DAI stablecoin.
Another whale who supplied 56,995 wrapped ETH, worth approximately $91 million, to borrow DAI is reportedly on the verge of liquidation. In such events, Sky seizes the ETH collateral, which is then auctioned to pay back the borrowed DAI plus fees.
Market-Wide Liquidation Wave
The damage extends far beyond these two cases. According to data from CoinGlass, about 320,000 traders have been liquidated over the past 24 hours, with losses totaling almost $1 billion. The majority of liquidations over a recent four-hour period have been ETH positions.
This sell-off has pushed Ethereum to price levels not seen since October 2023, when crypto markets were still recovering from the aftermath of the FTX exchange collapse. ETH now trades 68% below its all-time high reached in 2021.
Just five days ago, the market sentiment was more optimistic. ETH had been slowly climbing toward the $1,950-$1,970 resistance zone, with traders hoping for a breakout that could have pushed prices to $2,050 or even $2,100.
Instead, sellers took control, momentum faded, and ETH prices nosedived. The key question now is whether the $1,550 support level can hold. If not, analysts suggest ETH could drop further to $1,450, a price point not seen since early 2023.
The current market downturn has been linked by some observers to U.S. President Donald Trump’s tariff announcements, which also impacted traditional markets. This connection highlights the growing correlation between crypto markets and broader economic factors.
For DeFi users with leveraged positions, the situation remains precarious. Without providing additional collateral, further price drops will likely trigger more liquidations across lending platforms.
The unexpected crash has dramatically shifted market sentiment. What seemed like the beginning of a bull run just a week ago has quickly transformed into a test of critical support levels, reminding participants of crypto’s famous volatility.
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