Ethereum Bulls on Edge as $100M in On-Chain Liquidations Loom Amid Tariff-Driven Crash
Ethereum whales have continued to accumulate ETH, but macro-driven market turbulence could soon put leveraged DeFi positions in jeopardy.
New data from DeFiLlama highlights that over $100 million in ether (ETH) collateralized positions could be at risk if the asset sees a further 15% slide, deepening the crypto rout sparked by escalating U.S. tariffs under President Donald Trump.
ETH dropped nearly 16% on Monday, trading around $1,490 in the European afternoon session, according to CoinDesk. The CoinDesk 20 index fell 13%, echoing the broader market’s risk-off sentiment as traders braced for more volatility with the U.S. market set to open.
If ETH dips below $1,274, over $100 million in collateralized DeFi positions would be vulnerable to on-chain liquidations — potentially triggering a cascade of forced sales.
Unlike liquidations on centralized derivatives exchanges, on-chain liquidations are more disruptive, as they involve direct selling of spot ETH into the market. For protocols like MakerDAO, liquidation means collateral is auctioned off, often at a discount, which can flood the market with ETH and intensify selling pressure.
One wallet with a liquidation threshold at $1,418 narrowly avoided being liquidated early Monday by reducing its ETH holdings and repaying a portion of its DAI loan — a tactical move to buy more runway.
DeFiLlama data also shows that a 20% decline in ETH’s price could place an additional $36 million in collateral at risk. The single largest vulnerable position currently holds $147 million in collateral with a liquidation price at $1,132.
Lending-focused DeFi tokens bore the brunt of the sell-off during the Asian trading session, with the category plunging 17% on the day, per CoinGecko. Traders are growing increasingly concerned about the resilience of leveraged positions across DeFi amid ongoing macro stress.
