Ethereum is in freefall, plunging over 14% in 24 hours to $2,330. The sell-off has triggered $1.34 billion in crypto liquidations, with Ethereum accounting for nearly $294 million, according to CoinGlass.

The biggest concern now? A potential $340 million liquidation event on MakerDAO. If Ethereum drops another 19%, three massive debt positions on the platform will be wiped out. This could trigger a cascading sell-off, which could amplify losses across decentralized finance (DeFi).

It’s not just leverage driving Ethereum lower. Trade tensions are back in focus after U.S. President Donald Trump confirmed that his 25% tariffs on Mexico and Canada will take effect next week. The last time Trump’s tariffs were announced, Ethereum tanked.

Gold is surging as investors rush to safer assets, while the Federal Reserve signals no urgency to cut interest rates. That spells trouble for risk assets like Ethereum, which is already struggling with market-wide selling pressure.

Ethereum’s technicals don’t look promising. Analysts warn that Ethereum has broken down from a bearish pennant pattern, putting the next downside target at $1,945—a 20% drop from current levels.

Given all this macro uncertainty and liquidations, Ethereum could be in for more pain before finding its bottom. At the time of writing, Ethereum is sitting at $2,421.81.