Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is facing intense downward pressure after suffering a staggering 27% price crash in just 48 hours. The steep drop saw ETH briefly plummet to a two-year low of $1,410 before clawing back above the $1,500 level on Monday. Despite the bounce, the threat of deeper losses looms large as short-term holders panic sell and DeFi liquidations accelerate.
Short-Term Holders Realize $500M in Losses
According to on-chain analytics firm Santiment, over $500 million in realized losses came from ETH holders on Monday, primarily from addresses that acquired their tokens within the past 30 days. This short-term cohort, known for reacting quickly to volatility, has been leading the selloff, with many capitulating at multi-month lows.
Interestingly, Ethereum wallets holding coins aged between 1 to 2 years are also beginning to offload, although at a slower pace. Analysts warn that if this group ramps up selling, it could unleash further bearish pressure, as many dip-buying addresses belong to this investor segment.
DeFi Protocols Trigger Massive ETH Liquidations
Increased liquidations across decentralized finance (DeFi) platforms have compounded Ethereum’s price decline. On-chain data reveals that Sky, formerly known as Maker, liquidated a major whale’s collateral of 53,074 ETH—valued at $74 million at the time.
Sky allows users to mint DAI stablecoins using ETH as collateral, automatically triggering liquidations when collateral values drop below a required margin. Another large ETH holder recently added 10,000 ETH and 3.52 million DAI to stabilize a massive 220K ETH position, lowering its liquidation threshold to $1,119. However, if Ethereum’s price breaches that level, the whale risks losing its entire stake.
The lending platform Aave also reported a wave of liquidations, totaling over $162 million in ETH collateral liquidated on Monday alone, according to @KARTOD’s Dune Analytics dashboard.
Ethereum Price Forecast: $1,000 Support in Focus
Technically, Ethereum is hovering just above a critical support at $1,522, with analysts closely watching the lower boundary of a descending channel that has confined ETH since December. A breach of this level could trigger a sharp descent to the psychological $1,000 mark, where limited support awaits.
The ETH/USDT daily chart reflects dominant bearish signals: the MACD histogram remains below neutral, while the Relative Strength Index (RSI) is deep in oversold territory. Despite this, oversold readings sometimes precede short-term recoveries or relief rallies.
On the flip side, if Ethereum manages to rally, it faces strong resistance near $1,800—reinforced by a long-standing descending trendline that has rejected several previous attempts to break higher.
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