Ethereum drops below $1600! Up to 343k ETH in DeFi protocols are nearing liquidation, with $1565 becoming the first line of defense.

According to the well-known on-chain analysis firm Lookonchain, which released the latest data today (5th), as Ethereum (ETH) fell below the $1,600 mark late at night, there are currently up to 343,075 ETH (worth approximately $547 million) in DeFi protocols at risk of liquidation. If the market continues to decline, a severe chain liquidation event could be triggered.
(Background: Alliance DAO strongly supports Zcash as "like early Bitcoin," community responds: It's been 10 years, isn't it still early?)
(Additional context: Mass slaughter! Bitcoin plunges below $61k, Ethereum drops to $1,600! Over $1.2 billion in liquidation in 24 hours across the network)

Ethereum (ETH) faced heavy selling pressure late today (5th), breaking through the important psychological level of $1,600. As the price plummeted, high-leverage positions hidden within decentralized finance (DeFi) protocols are gradually becoming a ticking time bomb in the market.

Note that 343,075 $ETH($547M) in DeFi protocols is at risk of liquidation!

46,741 $ETH($74.71M) will be liquidated at $1,565.72

58,032 $ETH($92.85M) will be liquidated at $1,555.04

100,394 $ETH($159.43M) will be liquidated at $1,426.31

137,908 $ETH($220.41M) will be… pic.twitter.com/QeVKkRfp4o

— Lookonchain (@lookonchain) June 5, 2026

Over $547 million in ETH on the brink of liquidation

According to on-chain data analysis account Lookonchain, which posted a tracking report on the evening of the 5th Taipei time, there are currently as many as 343,075 ETH facing extremely high liquidation risk within DeFi protocols, totaling approximately $547 million.

Lookonchain detailed four critical price levels that could trigger large-scale liquidations:

• When the price drops to $1,565.72, 46,741 ETH (about $74.71 million) will be liquidated.
• When the price drops to $1,555.04, 58,032 ETH (about $92.85 million) will be liquidated.
• When the price drops to $1,426.31, 100,394 ETH (about $159.43 million) will be liquidated.
• When the price drops to $1,361.73, 137,908 ETH (about $220.4 million) will be liquidated.

Beware of chain reaction cascading effects

Market analysis indicates that if Ethereum’s price fails to hold its current level and further drops to the $1,565 support line, it will directly trigger the first wave of nearly $75 million in liquidation selling pressure. In a market with low liquidity, the automatic liquidation mechanisms of DeFi protocols will forcibly sell collateral assets into the market, potentially causing a sharper decline in the token price in a short period, which could trigger a cascade liquidation effect at lower levels of $1,555 or even below. Investors should strictly manage leverage risks and closely monitor market developments.