The crypto market is in a state of chaos as Ethereum takes a major hit. In just 24 hours, ETH has dropped over 14% and is now trading around $1,547. This has triggered a wave of liquidations, shaken up major DeFi players, and left traders scrambling.
So what happened? Why is Ethereum crashing so hard, and what does it mean for the rest of the market? Let’s break it down.
Ethereum’s plunge has triggered a chain reaction across decentralized finance (DeFi) platforms. One of the biggest incidents happened on the Sky lending platform. According to Maker Vaults explorer DeFi, a major ETH whale lost 67,570 ETH—worth about $106 million—when their collateral ratio fell below the required 150%.
Sky’s automated system kicked in and liquidated the position when the ratio dropped to 144%. In simple terms, as ETH’s price fell, the collateral backing the whale’s loan wasn’t enough anymore. This triggered a forced sell-off to cover the debt.
Another whale, who deposited around 56,995 wrapped ETH—worth roughly $91 million—is also close to being liquidated. Data from CoinGlass shows that nearly $1 billion in crypto positions were wiped out in the past 24 hours, with Ethereum holders being hit the hardest.
Technically, Ethereum is in a weak spot. It has dropped below key support levels at $1,650 and $1,620 and is now facing strong resistance near $1,600 and $1,675. Without a solid recovery, ETH could fall further toward the next key support level at $1,420. Right now, buyer interest is low, and technical indicators are pointing to more possible downside unless a strong bounce happens soon.
It’s not just Ethereum under pressure – Bitcoin has also seen losses, adding to the fear and uncertainty among investors. ETH is now down 68% from its all-time high in 2021, raising concerns that things could get worse if traders don’t step in to strengthen their positions with more collateral.
The crypto market feels unsettled. Ethereum’s steep fall and the massive wave of liquidations have clearly shaken confidence.
Everyone is watching to see if ETH can stabilize and bounce back, but for now, most investors are staying cautious and waiting it out.
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