Ethereum Price Plunge Nears MakerDAO’s $340M Liquidation Level

Ethereum (ETH) has dropped 11.5% in the past 24 hours, bringing it dangerously close to triggering massive liquidations on MakerDAO. On-chain data reveals that three major positions, valued between $109 million and $126 million each, will be liquidated if ETH falls to $1,926, $1,842, and $1,793.

Currently trading at around $2,390, ETH has tumbled 42% since Dec. 16 amid a broader market sell-off driven by weakening sentiment and declining global equities. While it’s unclear if this signals a bear market, past bull cycles have seen 30% corrections before rebounding.

To trigger the MakerDAO liquidations, ETH must drop another 19%, which could unleash a cascading effect across DeFi protocols and exchanges. So far, over $296 million in ETH positions have been liquidated on exchanges in the past day, according to CoinGlass.

Despite the turbulence, experienced traders often see such deleveraging events as buying opportunities, as short-term liquidity issues push prices below their perceived intrinsic value.