The price of ether (ETH) dropped 22% in the past 48 hours, coming close to liquidating an ETH position worth over $126 million. However, a bounce at $2,000 prevented liquidations in Ethereum's decentralized finance (DeFi) ecosystem on MakerDAO. Liquidations in DeFi have a significant impact as they involve spot assets rather than derivatives. Trading firms target liquidation levels for short-term volatility and the potential for cascades, where one liquidation triggers several others. The recent performance of ETH has been overshadowed by bitcoin (BTC) and the rise of other blockchains like Solana and Base, leading to a lower ratio compared to previous cycles.



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