Ethereum Drops Nearly 20% in One Day
Ethereum (ETH) is currently going through a tough time. The cryptocurrency has indeed fallen by almost 20% in the last 48 hours, reaching a low of $1,476. This price level has not been seen since March 2023, over a year ago.
This abrupt correction comes amid macroeconomic tensions, including new customs duties imposed by the Trump administration, weighing heavily on the entire crypto market. In the last 24 hours, a staggering $400 million worth of Ethereum positions were liquidated, according to Coinglass data. “Bull” traders were the most affected, with $341 million in losses.
Maker Validator Suffers Heavy Loss
Among the most emblematic victims of this debacle is a whale investor who experienced a monumental loss. As per Lookonchain reports, this trader had taken a substantial loan on the DeFi Maker platform (formerly Sky). However, when the Ethereum price collapsed, the system automatically sold the 67,570 ETH (over $100 million) held as collateral to repay the debt.
Gloomy Outlook for Ethereum
Beyond this sudden crash, Ethereum has been facing a tough time for several months. The cryptocurrency ended the first quarter of 2025 down by 45%, losing nearly $170 billion in value. This historic decline makes this quarter one of the worst for ETH since 2016.
Despite record volumes on decentralized DEX platforms in March, Ethereum network revenues plummeted from $142 million in January to only $21 million in March, according to DeFiLlama data. The implementation of EIP-1559 in March, aimed at reducing transaction fees, was not enough to turn the tide.
Several factors contribute to this bleak outlook. The competition from layer 2 solutions continues to erode Ethereum’s market share, offering more attractive fees and transaction speeds. Additionally, the tense macroeconomic environment, with fears of a recession, heavily weighs on the entire crypto sector.
