According to BlockBeats, data from Lookonchain on June 5 reveals that several large Ethereum holders face significant liquidation risk across DeFi lending protocols. A total of approximately 343,075 ETH, valued at around $547 million, stands close to their liquidation thresholds. The critical price levels range from $1,361.73 to $1,565.72.
The exposure is broken down as follows: 46,741 ETH (~$74.71 million) with a liquidation price of $1,565.72; 58,032 ETH (~$92.85 million) at $1,555.04; 100,394 ETH (~$159 million) at $1,426.31; and 137,908 ETH (~$220 million) at $1,361.73.
In DeFi lending, smart contracts automatically liquidate collateral when its value drops below a set threshold, selling the assets to cover outstanding loans. If ETH falls to these levels, it would trigger forced selling of the collateral, potentially accelerating downward pressure and creating a cascade effect as multiple positions unwind simultaneously.