#EthereumFuture Ethereum Price Forecast:
Ethereum faces the risk of falling to $1000 amid selling pressure from DeFi liquidations.
Today's Ethereum Price
Short-term Ethereum holders led the recent selling activity, incurring losses of over $500 million on Monday.
Increasing DeFi liquidations could accelerate Ethereum's decline and lead to further liquidations.
Ethereum could drop to $1000 if it breaks below the lower limit 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 $1500 on Monday. According to Coinglass data, the drop triggered $257.87 million in liquidations in the Ethereum derivatives market during this period.
On-chain data also shows that most investors are capitulating, leading to realized losses in Ethereum exceeding $500 million, according to Santiment. Most of the recent selling activity comes from coins purchased in the last month, highlighting the strong reaction of short-term holders to downward price movements.
Furthermore, coins aged between one to two years are also joining the selling but at a moderate pace.
