The recent decline in Ethereum's price has raised concerns, as it puts approximately $320 million in decentralized finance (DeFi) loans at risk of liquidation.

Current data reveals that around $319.8 million in Ethereum-based loans are just 20% away from their liquidation threshold.

If Ethereum's price falls below $1,800 and approaches $1,750, approximately $246 million worth of collateral could be liquidated.

Most of the at-risk positions are concentrated on major DeFi lending platforms, particularly MakerDAO and Compound.

MakerDAO accounts for nearly $229 million of the total at-risk loans, while Compound users face potential losses of about $17 million.

This situation raises the possibility of a liquidation cascade, where falling prices lead to mass liquidations, further exacerbating price declines and increasing market volatility.