Ethereum slipped below $1,600, pushing liquidation risk across DeFi protocols into sharper focus. Data shared by Lookonchain on the 5th showed that 343,075 ETH is now sitting near liquidation territory, with a reported value of about $547 million.
The drop has exposed a large cluster of leveraged on-chain positions. If ETH keeps moving lower, automatic liquidation systems used by DeFi protocols could force collateral onto the market, adding concentrated sell pressure over a short period. Several price levels now stand out as immediate trigger zones.
$1,565.72 emerges as the first major level
According to Lookonchain, the first key liquidation threshold is $1,565.72. If ETH reaches that level, about 46,741 ETH could be liquidated, worth roughly $74.71 million. At $1,555.04, the amount at risk rises to 58,032 ETH, or about $92.85 million.
That leaves little room between the break below $1,600 and the first wave of possible forced selling. A sharp move can feed on itself. Once liquidations begin, the resulting sales may drag the price lower and open the door to the next cluster.
Lower levels carry much heavier liquidation volume
The liquidation map becomes more severe at deeper price points. Lookonchain said that if ETH falls to $1,426.31, around 100,394 ETH may be liquidated, with an estimated value of $159.4 million. If the price drops to $1,361.73, the figure climbs to 137,908 ETH, equal to about $220.4 million.
The distribution shows that liquidation pressure is not spread evenly across the market. It is clustered around specific levels, and each lower zone carries a larger volume of potential forced selling. If one threshold breaks, spot weakness and protocol-driven liquidations can hit at the same time.
Automatic liquidations could intensify short-term swings
The report said that if ETH fails to hold current levels and slides toward $1,565, the market could face an initial liquidation wave of nearly $75 million. In thin liquidity conditions, DeFi protocols do not pause before liquidating collateral, and that can accelerate price moves within a short window.
Market attention has now shifted from the round-number break at $1,600 to the more precise on-chain liquidation zones at $1,565 and $1,555. Lookonchain’s figures point to a market where any continued downside would not only mean regular selling pressure, but also extra stress from cascading DeFi deleveraging.