Ethereum Price Predictions:

Ethereum Faces Risk of Falling to $1000 Amid Selling Pressure from DeFi Liquidations

Current Ethereum Price

Short-term Ethereum holders led the recent selling activity, incurring losses exceeding $500 million on Monday.

Increased DeFi liquidations could accelerate Ethereum's decline and lead to further liquidations.

Ethereum could drop to $1000 if it breaks below the minimum of a descending channel.

Ethereum (ETH) has suffered a decline of over 27% in the past 48 hours, briefly dropping to a two-year low of $1410 before recovering to the $1500 level on Monday. According to Coinglass data, the drop triggered liquidations worth $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.

Furthermore, coins aged between one to two years are joining the sell-off, but at a moderate pace.