Ethereum (ETH) has come under intense selling pressure, dipping below $2,000 and triggering liquidation risks for large holders.

Several whales have been forced to move assets to decentralized lending protocols to cover their positions.

The recent price drop saw ETH falling to $1,791.23, liquidating multiple positions and putting additional collateral at risk.

Decentralized finance (DeFi) lending platforms are witnessing heightened liquidation activity as whales struggle to maintain their collateral.

One whale was liquidated after ETH fell under $1,800, triggering a total debt of $2.27 million in DAI.

The collateral, valued at $1.23 million, was absorbed by the liquidation protocol, increasing its reserves while the borrower retained the DAI issued from the loan.

A significant position is at risk of liquidation if ETH declines by another 6.4%.

Despite being 182% collateralized, the vault faces mounting pressure due to market fluctuations.

Another major vault, holding 75 million DAI, faces liquidation at $1,798.83, with 60,000 ETH at risk if ETH declines further by 5.9%.

Some whales have actively responded to the dip by purchasing ETH or adding collateral.

One entity spent $30.8 million DAI to buy ETH at $2,014, though the position remains underwater.

A dormant account was also reactivated to post additional collateral, avoiding liquidation at $1,836 per ETH.

Maker’s oracle, which displays a slightly higher price, has provided some protection against cascading liquidations.

Speculation arose that the Ethereum Foundation was among the whales facing liquidation.

However, Ethereum developer Eric Conner dismissed these claims, confirming that no evidence linked the affected wallet to the Foundation.

The organization had previously deposited $120 million worth of ETH into Aave, Compound, and Maker for DeFi operations.

One whale successfully reduced liquidation risks by adding 30,098 ETH worth over $56 million.

This move lowered the liquidation price to $1,127, securing the position against immediate threats.

Currently, the vault holds 100,394 ETH as collateral while carrying $78 million in borrowed DAI, with an additional 53 million DAI available for minting.

Ethereum’s open interest remains subdued at $9.22 billion over 24 hours, indicating cautious trading behavior.

Bybit leads in liquidations, with over 83% of short positions affected.

The accumulation of liquidity in short positions at $2,000 and $2,200 suggests a potential rally as traders attempt to liquidate these positions, potentially alleviating pressure on DeFi protocols.