Ethereum Price Predictions:
Ethereum is facing the risk of dropping to $1000 amid selling pressure from DeFi liquidation.
Today's Ethereum Price
Short-term Ethereum holders have led the recent selling activity, incurring losses exceeding $500 million on Monday.
The increasing DeFi liquidation could accelerate Ethereum's decline and lead to further liquidations.
Ethereum could drop to $1000 if it breaks the lower limit of the descending channel.
Ethereum (ETH) has suffered a collapse of over 27% over the past 48 hours, briefly dipping to a two-year low of $1410 before regaining the $1500 level on Monday. According to Coinglass data, the decline triggered a liquidation of $257.87 million in the Ethereum derivatives market during this period.
On-chain data also shows that most investors are capitulating, leading to realized losses for Ethereum exceeding $500 million, according to Santiment. Most of the recent selling activity comes from coins purchased last month, highlighting the strong reaction of short-term holders to downward price movements.
Moreover, coins aged between one to two years are joining the sell-off but at a moderate pace.
