Ethereum on the Brink: On-Chain Liquidations Near $100M as Price Plunge Threatens Leverage Stack

Ethereum (ETH) is walking a tightrope as macroeconomic turbulence rattles crypto markets, placing nearly $100 million in on-chain positions at risk of liquidation, according to fresh data from DeFiLlama.

The latest sell-off, driven by shockwaves from President Donald Trump’s sweeping tariff hikes, has slammed digital assets across the board. ETH dropped by nearly 16% on Monday, slipping to around $1,490, while the CoinDesk 20 index tracked a broader 13% decline across major tokens.

If the downtrend continues and ETH loses another 15%, dipping below $1,274, a wave of on-chain liquidations could be triggered — potentially exacerbating sell pressure in already fragile markets.

Unlike derivatives-driven liquidations, which occur within isolated exchange systems, on-chain liquidations affect actual spot assets. For instance, MakerDAO liquidates undercollateralized loans through auctions, often at discounted rates — a mechanism that can flood the market with ETH and drag prices even lower.

One wallet flagged for potential liquidation at $1,418 narrowly avoided the threshold on Monday by reducing exposure and repaying part of its DAI debt, on-chain data shows. Meanwhile, if ETH falls another 20%, roughly $36 million more could face forced liquidation.

The largest at-risk position holds $147 million in collateral with a liquidation trigger at $1,132 — a level that now looms amid growing bearish sentiment.

Lending-focused DeFi tokens were among Monday’s worst performers, down 17% in the Asian session per CoinGecko, as investors increasingly question the durability of leverage in the face of intensifying macro pressures.