Tariff Turmoil Pushes ETH to Brink, $100M in DeFi Positions at Risk
The global sell-off sparked by escalating trade tensions is catching up with Ethereum markets, where nearly $100 million in on-chain positions hang by a thread.
Ethereum (ETH) sank over 15% on Monday, trading just above $1,490 as Asian markets reacted sharply to U.S. President Donald Trump’s renewed tariff offensive. According to DeFiLlama data, a further 15% slide could push ETH below $1,274 — a critical level that would trigger liquidations totaling over $100 million.
These aren’t just futures wipeouts. We’re talking about on-chain leveraged positions in protocols like MakerDAO, where liquidation events involve selling actual ETH into the market. Such moves can generate a snowball effect of forced selling, amplifying market pressure.
One address in particular came dangerously close to its liquidation point at $1,418, but managed to trim ETH exposure and repay a portion of its DAI debt just in time. Still, analysts warn more wallets could soon follow suit if the market continues to bleed.
Should ETH decline by 20%, another $36 million worth of positions stand to be forcibly unwound. The largest vulnerable vault carries $147 million in collateral, with a liquidation threshold set at $1,132 — a level not seen in months.
DeFi lending protocols were hit hard during the Monday Asia session, with CoinGecko reporting a 17% drop for the category. With the U.S. session approaching, traders are bracing for more turbulence as liquidation fears loom large.
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