DeFi Faces Potential ETH Liquidations: Over $547M at Risk Around $1,554
More than 343,000 ETH—worth about $547 million at current prices—is hovering near liquidation levels across DeFi lending markets, according to on-chain data flagged by Lookonchain on June 5. Most at-risk positions are clustered between $1,362 and $1,566. With ETH trading around $1,554, several accounts are operating with minimal margin.
The largest vulnerable position is 137,908 ETH with a liquidation price of $1,361.73, representing roughly 40% of the total flagged ETH. A drop of about 12% from current levels would trigger an automatic unwind.
Near-term pressure sits closer to spot. On Maker, 46,741 ETH is set to liquidate at $1,565.72. On Aave V3, another 58,032 ETH is exposed at $1,555.04. Together, those positions exceed 104,000 ETH—around $166 million—that could be sold if ETH slips only a few dollars.
In DeFi lending, when collateral falls below required ratios, smart contracts liquidate positions by selling collateral into the market. If multiple liquidations hit at once, selling can compound into a feedback loop that drives prices lower and triggers additional liquidations. No liquidation cascade has been confirmed so far.
DeFi has seen similar setups before. In March 2025, roughly $320 million in ETH was flagged as at risk across lending protocols. The current $547 million figure implies a 71% jump in exposure versus that episode. Notably, the $1,362–$1,566 band spans only about 15% of ETH's price range yet captures essentially all of the flagged risk.
The biggest concentrations sit on Maker and Aave V3, two of the sector's most established protocols, both of which have weathered past liquidation events without protocol-level failures.
For investors, the key levels are $1,555 on Aave V3 and $1,565 on Maker. Holding above them reduces immediate risk. A break below could bring roughly 104,000 ETH of forced selling before attention shifts to the larger $1,361.73 threshold.
Borrowers with active DeFi loans may want to reassess collateral ratios. Adding collateral or partially repaying debt to lower liquidation prices remains the standard risk-management approach.
