$ETH ETH risks further downside pressure if DeFi liquidations continue

Increased liquidations across DeFi protocols have partly accelerated ETH's decline.

Sky, formerly Maker, liquidated a whale's collateral of 53,074 ETH worth $74 million at the time, per Lookonchain data.

Sky allows users to create and borrow DAI stablecoin using ETH as collateral. The protocol automatically liquidates borrowers' positions when the value of their collateral drops below a certain threshold.

Another whale with a collateral of 220K ETH added 10K ETH and 3.52M DAI to reduce its liquidation price to $1,119. The whale risks losing all its collateral if ETH plunges below $1,119.

Similar liquidations are visible in lending platform Aave, where the protocol recorded over $162 million in liquidated collateral on Monday, according to dashboard.