Ethereum prices dropped over 8% after more than $1.1 billion in leveraged positions were liquidated across major crypto exchanges. The sell-off followed renewed dollar strength and risk-off sentiment in global markets. Analysts said excessive long exposure in futures amplified the decline. Bitcoin also retreated toward $66,000. DeFi activity slowed as traders reduced exposure. Experts warn that volatility could persist until macro data stabilizes and institutional buying resumes. Liquidity remains tight across major crypto exchanges.