Ethereum (ETH) is under pressure once again, dropping around 3% in the last 24 hours and falling below the $1,800 level. This decline is putting several large leveraged positions at risk, including two massive whale vaults on Maker that collectively hold over $235 million worth of ETH.
With on-chain indicators flashing warning signs and technical levels being tested, the stakes are rising for both bulls and bears. As ETH hovers near critical support, the coming days could prove pivotal for its short-term price trajectory.
Ethereum Whales Could Get Liquidated
Ethereum has dropped around 3% in the past 24 hours, slipping below the $1,900 mark once again. This decline is putting pressure on large leveraged positions within the DeFi ecosystem.
According to on-chain data from Lookonchain, two major whale vaults on Maker—one of the leading decentralized lending protocols—are now approaching critical levels.
Together, these vaults hold 125,603 ETH, valued at approximately $235 million. With ETH’s price nearing their liquidation thresholds, both vaults are at risk of being forcibly closed if the downward trend continues.
In Maker’s system, users can deposit ETH into vaults as collateral to borrow the DAI stablecoin. To avoid liquidation, the collateral must stay above a certain health ratio—essentially a safety buffer.
When that buffer gets too low, the protocol automatically sells off the collateral to cover the debt. In this case, the health ratio of the whale positions has fallen to just 1.07, dangerously close to the minimum threshold.
One vault faces liquidation at an ETH price of $1,805, and the other at $1,787. If ETH continues to dip, these vaults could trigger significant sell pressure, potentially accelerating the downward move.
Indicators Suggest The Downtrend Could Continue
Ethereum’s recent price drop has pushed its Relative Strength Index (RSI) back into oversold territory, currently sitting at 24.37. Just three days ago, the RSI was at 58.92, indicating how quickly sentiment has shifted.
The RSI is a momentum indicator that measures the speed and change of price movements, with readings below 30 typically signaling that an asset is oversold.
While this suggests that Ethereum may be due for a short-term bounce or relief rally, historical data shows that RSI can remain oversold for extended periods—or even drop further—if bearish momentum stays strong.
Ethereum’s Directional Movement Index (DMI), which signals a strong downtrend, adds to the bearish outlook. The Average Directional Index (ADX), which measures the strength of a trend, surged to 38.6 from 23.47 just a day ago, indicating growing momentum behind the current move.
Meanwhile, the +DI (positive directional indicator) has fallen to 10.6, while the -DI (negative directional indicator) has spiked to 40.23, showing that sellers are firmly in control.
This combination—rising ADX, high -DI, and falling +DI—typically suggests an intensifying bearish trend, meaning Ethereum’s price could remain under pressure in the near term despite already being technically oversold.
Will Ethereum Fall Below $1,800 Soon?
If Ethereum’s downtrend continues, the next key level to watch is the support at $1,823. A break below this level could quickly push the price down toward $1,759—a move that would trigger the liquidation of two major whale vaults on Maker, which are already hovering near their thresholds.
These potential liquidations could amplify sell pressure, making it even harder for Ethereum price to stabilize in the short term. Given the current bearish momentum and weak technical indicators, this scenario remains a real risk if bulls fail to step in.
However, if sentiment shifts and the trend reverses, Ethereum could regain ground and test the resistance level at $1,938.
Breaking above that could open the path toward $2,104, a level that has previously acted as both resistance and support. Should buying momentum strengthen further, ETH might continue climbing toward $2,320 and potentially even $2,546.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
