On-chain data shows that approximately 343,075 ETH are currently exposed to DeFi protocol liquidation risks, corresponding to about $547 million according to the article's figures. With ETH breaking below its previous upward channel, the market is refocusing on areas with concentrated lending positions and whether the $1300 level can continue to provide support.
Liquidation positions are concentrated at multiple price levels
Based on the disclosed data, the risks are mainly distributed across multiple large-scale lending positions, with the largest group of liquidation hotspots located at $1,361.73, corresponding to 137,908 ETH, amounting to approximately $220 million.
Maker is one of the main sources of risk. The article mentions that the protocol has two large liquidation periods:
- 100,394 ETH, liquidation price approximately $1426.31.
- 137,908 ETH, liquidation price approximately $1361.73.
- The two groups together amount to approximately US$380 million.
This means that if ETH continues to decline and touches these price ranges, on-chain collateral may face more intense pressure from forced liquidations.
Technical pattern weakens
The article also points out that ETH has recently broken below its previous upward channel. The anchored volume distribution also shows that the price has fallen below the previous high-volume trading area. Areas that previously acted as support, once breached, often become new resistance levels.
In this scenario, market support during downturns may weaken, and price volatility is more likely to amplify. For DeFi positions already nearing liquidation thresholds, this would further increase the risk.
$1300 becomes the next level to watch.
The next key area the market is currently focused on is around $1300. It's worth noting that most of the liquidation prices listed in the text are above this range. This means that if ETH continues to fall, some highly leveraged borrowing positions may enter liquidation pressure zones before the price reaches $1300.
Overall, the Ethereum on-chain lending system still carries significant collateral risk. If prices continue to weaken, liquidations could spread from localized positions to a wider range, putting additional pressure on short-term liquidity.
