As Ethereum's value decreased, the whale's collateralization ratio fell to 144%, leading to the liquidation of their holdings.

In the liquidation process on Sky, the platform seizes the ETH collateral, auctions it off, and uses the proceeds to repay the borrowed DAI plus any associated fees.

ETH prices plummeted to $1,547, marking a significant 14.5% decline in just 24 hours amid a broader market downturn linked to economic factors.

Experts believe that a reversal in tariff policies or emergency interest rate cuts by the Federal Reserve could provide a potential lifeline for the struggling crypto market.

Overall, the cryptocurrency market faced significant downturns, with $1.36 billion in liquidations affecting 441,856 traders across various assets.

Another whale, holding 56,995 wrapped ETH valued at around $91 million, is reportedly on the brink of liquidation, with a critical price threshold set at $1,564.58.

On April 6, 2025, a significant liquidation event on the DeFi platform Sky resulted in a cryptocurrency whale losing over $106 million due to a 14% drop in Ethereum's price.

The whale held 67,570 ETH as part of a collateralized debt position, but the asset's value fell below the required collateral ratio, triggering the liquidation process.

This downturn in ETH was part of a larger trend, as Bitcoin also dropped below $75,000, reflecting a steep decline from its recent peak of nearly $90,000.

Currently, ETH is down 68% from its all-time high in 2021, raising concerns over further liquidations in the DeFi sector unless users can add more collateral.

In the last 24 hours alone, 320,000 traders were liquidated, resulting in nearly $1 billion in losses, with a significant portion involving ETH positions.

Market analysts attribute the decline to economic uncertainty stemming from President Donald Trump's recent tariffs, which have led to widespread sell-offs.