$ETH Ethereum Price Forecast: ETH risks a decline to $1,000 amid selling pressure from DeFi liquidations

Cryptos | 04/08/2025 01:49:58 GMT

Ethereum price today:

Ethereum short-term holders have spearheaded the recent selling activity, realizing over $500 million in losses on Monday.

Rising DeFi liquidations could accelerate ETH's decline and potentially set off more liquidations.

ETH could decline to $1,000 if it breaches the lower boundary of a descending channel.

Ethereum (ETH) suffered a more than 27% crash within the past 48 hours, briefly dropping to a two-year low of $1,410 before recovering the $1,500 level on Monday. The decline, per Coinglass data, sparked $257.87 million in liquidations across ETH's derivatives market during the period.

On-chain data also shows most investors are capitulating, sending ETH realized losses past $500 million, according to Santiment. Most recent selling activity stems from coins purchased in the past month, highlighting short-term holders' strong reaction to downside price moves.

Furthermore, coins aged 1Y to 2Y are joining the selling but at a modest pace. An increase in selling pressure from this cohort could spark an extended decline in ETH as most buy-the-dip activity has largely flowed into addresses related to them.