Tariff Shock Triggers $100M Liquidation Threat for Ethereum Longs

ETH Tumbles as Liquidation Risks Mount: $100M in On-Chain Positions Hang in the Balance

Ethereum markets are under mounting pressure as a steep price decline threatens to trigger a cascade of liquidations totaling nearly $100 million, according to DeFiLlama data.

The downturn, catalyzed by intensifying global economic uncertainty following President Trump’s aggressive tariff campaign, has pushed ETH down over 15% in the past 24 hours, currently hovering around $1,490. Broader market stress is evident, with the CoinDesk 20 index falling 13% and risk assets selling off globally.

If Ethereum slips another 15% to below $1,274, a significant volume of leveraged DeFi positions could be liquidated. Unlike exchange-based liquidations, on-chain events can inject substantial sell pressure into spot markets, intensifying volatility.

MakerDAO’s liquidation system, which auctions off collateral when a position falls below its debt threshold, is especially in focus. These auctions often result in discounted ETH flooding the market, increasing downside pressure.

One Ethereum address, dangerously close to liquidation at $1,418, narrowly avoided triggering by repaying part of its DAI debt and reducing its ETH exposure earlier Monday. But further stress could renew the threat.

Another $36 million in DeFi positions could unwind if ETH sees a 20% drop from current levels. Notably, the largest single wallet at risk has $147 million in collateral locked, with its liquidation point sitting at $1,132.

DeFi lending tokens bore the brunt of the sell-off during Asia hours, with the category plunging 17% on the day. Analysts warn that if ETH continues its descent, the resulting cascade of liquidations could destabilize already shaky market conditions.