Ethereum (ETH) has recently experienced significant liquidations in the market, impacting both long and short positions across centralized and decentralized platforms.

Recent Liquidation Events

April 2025: ETH's price dropped by 14% in 24 hours, triggering a $106 million liquidation of a large position on the DeFi platform Sky. This event highlighted the risks associated with over-collateralized loans in decentralized finance.

Early May 2025: A surge in ETH's price above $2,100 led to a short squeeze, resulting in approximately $259 million in short position liquidations. This movement was influenced by positive market sentiment following a U.S.-UK trade agreement.

Mid-May 2025: ETH's price rallied nearly 45% over three days, approaching $2,600. This upward movement led to the liquidation of $786 million in short positions, as traders who bet against ETH's rise were forced to close their positions.

Ongoing Risks

Despite recent recoveries, significant liquidation risks remain:

DeFi Platforms: Data indicates that over $913 million in ETH positions are at risk of liquidation if prices decline further.

Whale Positions: Large holders on platforms like MakerDAO are close to liquidation thresholds. For instance, a whale with a $300 million ETH position added $14.5 million in collateral to avoid liquidation, which would occur if ETH's price falls below $1,119.

Current Market Status

As of now, Ethereum is trading at approximately $2,586.54 USD. While this price is above recent lows, the market remains volatile, and traders should exercise caution.

In summary, Ethereum has experienced significant liquidation events recently, and while the market has shown signs of recovery, substantial risks persist, especially for leveraged positions.