MarketPR
$ETH shed 4 percent in a single session, sliding to $1,628 as a broad risk-off wave tore through crypto markets and forced more than $1.1 billion in leveraged positions into liquidation.
The selloff exposed how much of the recent bid had been built on borrowed money rather than organic demand — and when the mechanism reversed, it reversed hard.
The Leverage Trap Before the price mattered, the plumbing mattered. High leverage across the market meant that even a modest directional move could cascade into forced selling.
When positions began unwinding, the liquidations fed further downside — a self-reinforcing loop that had nothing to do with any protocol-level development and everything to do with who was holding risk they couldn't afford to keep.
Keep reading