Bitget Research: If ETH Falls by 20%, It May Trigger Over $336 Million in Liquidation Risk

On March 31st, Ryan Lee, the chief analyst of Bitget Research Institute, pointed out that as the market enters the second quarter, Bitcoin and Ethereum are facing a dual test of macro and technical factors. Currently, BTC is fluctuating within the range of $80,000 to $86,000, while ETH is fluctuating within the range of $1,600 to $2,200. Previously, Trump's proposed 25% tariff policy (scheduled to be implemented on April 2nd for Mexican and Canadian goods) has raised concerns about the re-escalation of a trade war. The correlation between crypto assets and traditional markets has increased, and the correlation between BTC and the Nasdaq has reached 0.67. If the US stock market weakens later, it may drag down the crypto market. ETF fund flows are also showing differentiation: BTC ETFs continue to attract funds, while ETH ETF funds continue to flow out, indicating institutional preference for Bitcoin. Relevant data shows that if ETH drops by 20% from its current price, it will trigger liquidations of more than $336 million, mainly concentrated on DeFi lending platforms. ETH has a high reliance on leverage protocols, which may lead to chain liquidations. The $1,600 level is a key support level. Once it is broken, it may accelerate the downside.