PANews reported on February 25 that according to CoinDesk, on-chain data showed that when the ETH price fell to US$1,926, US$1,842 and US$1,793 respectively, three large positions would face liquidation, with each position valued between US$109 million and US$126 million.

Currently, ETH is trading at around $2,390 following a widespread sell-off due to low sentiment and a global stock market sell-off. Whether this plunge will trigger a wider bear market remains to be seen. In previous bull cycles, asset prices usually experience a deep correction of around 30% to clear excess leverage before a rebound. However, since December 16, ETH has fallen 42%.

To trigger the liquidation of MakerDAO, the price of ETH needs to fall another 19%, which may trigger a chain liquidation of DeFi protocols and exchanges. According to statistics, exchanges have liquidated about $296 million of ETH positions in the past 24 hours. It is worth noting that the sell-off caused by deleveraging may provide savvy traders with opportunities to buy low, because short-term liquidity tightening determines the spot price, rather than its long-term perceived true value.