The second-largest cryptocurrency in the world witnessed massive liquidations amidst its current price decline. 

The DeFi sector is facing instability as ETH liquidation surges. In the past 24 hours, the DeFi landscape witnessed over $5.4 million in collateral liquidations, with Ethereum (ETH) holding a massive share. This comes with Ethereum’s decline to $3,200 following its previous approach to the $4,100 level earlier this month. 

As per Parsec data, the DeFi sector saw collateral liquidations amounting to $4.27 million linked to Ethereum alone. In addition, amidst Ethereum’s price fluctuations, the data shows significant collateral liquidations if ETH will drop to $3,008. At this level, $24 million worth of ETH collateral would be liquidated. 

Furthermore, on-chain derivatives exchanges such as GMX, Kwenta, and Polynomial have collectively initiated liquidations surpassing a staggering $52 million in the same period. With Ethereum’s price plummeting to $3,200 from its recent peak of $4,100, short trailers seized the opportunity to profit by closing out their positions. 

At this time of writing, Ethereum (ETH) is down by 8.86% trading at $3,277 with a 24-hour trading volume of $29.53 million. 

Meanwhile, as ETH witnessed a 20% retracement, Ethereum has become the second largest decliner among the top 10 cryptocurrencies, following Dogecoin (DOGE) and the commencement of the post-Dencun upgrade sell-off on March 14. 

Interestingly, ETH traders kept their optimism by holding and hedging their positions in hopes of an imminent recovery phase. 

Based on the key market signals, Ethereum price could still avoid further declines in the coming days as the bulls look to regroup at the $3,200 support level to set the stage for a recovery phase.