Ethereum Price Forecast: ETH at Risk of Plummeting to $1,000 Amid DeFi Liquidations

Ethereum (ETH) is under significant selling pressure, primarily driven by DeFi liquidations and short-term holders offloading their assets. This has already resulted in over $500 million in losses, with the potential for further declines if the current trend continues. Over the past 48 hours, ETH has experienced a drastic 27% crash, briefly dipping to alarming lows. Analysts warn that if ETH breaches the lower boundary of its descending channel, it could plummet to $1,000, marking a critical juncture for the cryptocurrency. The rising wave of DeFi liquidations threatens to exacerbate the sell-off, creating a vicious cycle of declining prices and forced liquidations. Investors are closely monitoring these developments as ETH’s price action remains highly volatile.

Ethereum Price Forecast: ETH at Risk of Declining to $1,000

Ethereum (ETH) is facing selling pressure from DeFi liquidations, with short-term holders leading the recent selling activity. This has resulted in over $500 million in losses. Rising DeFi liquidations could accelerate ETH’s decline and potentially trigger more liquidations. If ETH breaches the lower boundary of a descending channel, it could decline to $1,000. In the past 48 hours, ETH suffered a more than 27% crash, briefly dropping to a two-year low of $1,410 before recovering to the $1,500 level. This decline sparked $257.87 million in liquidations across ETH’s derivatives market.

Ethereum Price Rebound Stalls; Faces Resistance at $1,620

Ethereum price failed to recover above $1,700 and dropped below $1,550. It is now correcting losses but might face resistance near the $1,620 zone. The price is trading below $1,620 and the 100-hourly Simple Moving Average. A connecting bearish trend line is forming with resistance at $1,615 on the hourly chart. Ethereum remains at risk of more losses if it fails to clear the $1,620 resistance zone.

Ethereum MVRV Drops To Lowest Since December 2022: Bottom Signal?

On-chain data shows the Ethereum market Value to Realized Value (MVRV) Ratio has plunged recently. The MVRV Ratio, an indicator that tracks the ratio between the ETH market cap and realized cap, has declined to 0.87. The realized cap calculates ETH’s total value by assuming the ‘true’ value of any coin is equal to the price at which it was last transacted on the blockchain. This represents the amount investors have put into the cryptocurrency. The recent drop in the MVRV Ratio may have implications for the ETH price.

SEC Roundtable: Uniswap and Coinbase Executives Among Participants Set to Discuss Crypto Regulations

The U.S. Securities and Exchange Commission (SEC) has unveiled the list of industry leaders who will participate in its upcoming roundtable on cryptocurrency trading regulation, set for April 11. The event, titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” marks the second session in a five-part series aimed at shaping the future of digital asset oversight. Executives from top crypto firms and financial institutions are slated to join the discussion, including Katherine Minarik, Chief Legal Officer at Uniswap Labs; Chelsea Pizzola, Associate General Counsel at Cumberland DRW; and Gregory Tusar, Vice President of Institutional Product at Coinbase. Notably, all three firms have previously been targeted by the SEC under the Biden Administration.