Ethereum (ETH) may continue to fall as 2 whales are at risk of liquidation.

Ethereum (ETH) is under selling pressure again, dropping about 2.2% in the past 24 hours, currently trading around the 1,845 USD mark. This decline is putting many large leveraged positions in a precarious situation, including two vaults (vault) of whales on Maker with total assets of over 235 million USD ETH.

With on-chain indicators sending warning signals and important technical thresholds being tested, pressure is mounting on both bulls and bears. As ETH hovers around a critical support area, the developments in the coming days could be a decisive factor for short-term price trends.

Ethereum whales face liquidation risk

Ethereum has dropped about 3% in the last 24 hours, slipping below the $1,900 threshold once again, putting significant pressure on leveraged positions in the DeFi ecosystem.

On-chain data from Lookonchain shows that two large vaults on Maker – one of the leading decentralized lending protocols – are approaching critical liquidation levels.

The first whale data on DeBank | Source: LookonchainThese two wallets are holding a total of 125,603 ETH, worth approximately 235 million USD. As the ETH price approaches the liquidation threshold, both wallets are at risk of being automatically liquidated if the downward trend continues.

In the Maker system, users can collateralize ETH into the vault to borrow the stablecoin DAI. To avoid liquidation, the collateralization ratio must be maintained above a certain safe level.

Second whale data on DeBank | Source: LookonchainWhen the collateral ratio drops too low, the protocol will automatically sell ETH to recover the debt. Currently, the health ratio of these two whale positions is only 1.07 - very close to the minimum level.

A margin will be liquidated if the price of ETH drops to 1,805 USD, while another margin has a liquidation threshold at 1,787 USD. If ETH continues to decrease, these margins could trigger strong selling pressure, pushing the price down further.

Technical indicators suggest that the downtrend may continue

The recent price drop has pushed the Relative Strength Index (RSI) of ETH into the oversold territory, currently at 24.37. Just 3 days ago, the RSI was still at 58.92, indicating that market sentiment has changed rapidly.

RSI is a momentum indicator that measures the speed and change of price movements, with a level below 30 often signaling that an asset is oversold.

ETH’s RSI Indicator | Source: TradingViewWhile this may signal a short-term recovery, historical data shows that the RSI can remain in the oversold territory for a long time – or even drop deeper if the downtrend remains strong.

The Directional Movement Index (DMI) of Ethereum also reinforces the negative outlook. The Average Directional Index (ADX), used to measure the strength of the trend, has surged from 23.5 to 38.6 in just one day, indicating that the bearish momentum is increasing.

The DMI indicator of ETH | Source: TradingViewMeanwhile, the +DI indicator ( is trending upwards) has decreased to 10.6 while the -DI indicator ( is trending downwards) has surged to 40.23, indicating that the bears are in control of the market.

The combination of rising ADX, high -DI, and low +DI often indicates that the downtrend is strengthening, meaning that ETH may continue to face selling pressure in the short term, even if the RSI shows an oversold condition.

Can Ethereum fall below 1,800 USD?

If the downward trend continues, the next important support level to watch is 1,823 USD. A break below this level could push the price of ETH down to 1,759 USD – a move that could trigger the liquidation mechanism of two giant whale vaults on Maker, which are very close to the danger zone.

These liquidations could create stronger selling pressure, making it even harder for ETH to stabilize its price in the short term. With the current downtrend and weakening technical signals, this risk is entirely possible if buyers do not intervene in time.

ETH Price Analysis | Source: TradingViewHowever, if market sentiment changes and a trend reversal occurs, ETH could recover and test the resistance level at 1,938 USD. If it surpasses this level, ETH could advance to 2,104 USD – a milestone that has previously served as both resistance and support.

In a more optimistic scenario, if buying pressure continues to increase, the price of ETH could aim for $2,320 and even exceed $2,500 in the next price surges.

You can view the ETH price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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Itadori

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