Introduction
Crypto traders woke up on April 7 to a massive selloff hitting the entire market. The total value of digital assets shrank by roughly 10%, dragging major tokens Ethereum plunges down to their lowest levels since January 2023. CoinGlass data reveals that liquidated leveraged positions reached over $1.6 billion in just 24 hours, though exchange API limits suggest the real number might climb higher.
ETH touched a two-year bottom at $1,415 on April 7, later climbing slightly to $1,562. Currently, ETH trades near $1,607 after a modest recovery.
DeFi Investors Race to Secure Funds
Ethereum plunges below the crucial $1,500 mark, investors scrambled to shield their leveraged holdings. Lookonchain reports show a whale transferring 10,000 ETH—valued at around $15 million—into Sky, a lending platform, to safeguard a $340 million position. A further drop below $1,119 could cost this investor up to 220,000 ETH.
DefiLlama’s numbers suggest that a decline under $900 might trigger liquidations of ETH-backed positions worth up to $600 million. On April 6, another whale suffered a $106 million hit, losing 67,570 ETH after a 14% price tumble.
Global Macro Forces Fuel Selloff
BRN analyst Darren Chu points to souring sentiment in global financial markets as the culprit, driven by unprecedented U.S. tariffs unveiled by the Trump administration over the weekend. Risk assets tanked early this week as investors flocked to safe havens like gold and U.S. bonds.
Dr. Kirill Kretov of CoinPanel noted, “Global uncertainty is spiking—trade disputes, geopolitical risks, and mixed economic data are all colliding.” Altcoins like ETH face intense strain in this environment.
Brief optimism from rumors of a 90-day tariff delay faded fast after the White House dismissed them. The S&P 500 shed $7 trillion in value in just 30 minutes, marking its first bear market in three years.
Signs of a Possible Rebound
Amid the gloom, some analysts spot potential. Kevin Rusher from RAAC remarked, “ETH below $1,500 seemed absurd months ago, but this dip might offer a rare chance to buy into a strong ecosystem.”
BRN suggests risk assets look oversold, hinting at a “Dead Cat Bounce” as early as this week. Traders should watch the FOMC minutes, CPI, jobless claims, PPI, and early U.S. consumer sentiment and inflation data.
