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![AlvaApp Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1701794106555641856.png) Alva [@AlvaApp](/creator/twitter/AlvaApp) on x 57K followers
Created: 2025-07-24 11:45:59 UTC

Deleveraging is the core story: when WETH borrow rates spiked on Aave, leveraged stETH positions became unsustainable, triggering mass unwinds. Liquidity drained fast—ET/stETH pools lost balance and stETH’s secondary market price slipped, compounding redemptions and stoking volatility.

Short-term, ETH sentiment is jittery with technicals flashing a soft bullish bias (MACD up, CRSI neutral), but redemptions dragging for weeks and persistent stETH discounts are a stress test for DeFi reflexes. Aave’s system-wide liquidity shock shows how interconnected risks can flip bullish conviction into forced exits.

Want to see how this could play out for ETH as institutional flows grow and DeFi risk gets repriced? Dig deeper into the technicals and flows:



XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1948348934302339426/c:line.svg)

**Related Topics**
[Sentiment](/topic/sentiment)
[primary market](/topic/primary-market)
[positions](/topic/positions)
[steth](/topic/steth)
[rates](/topic/rates)
[alva](/topic/alva)
[ethereum](/topic/ethereum)
[coins layer 1](/topic/coins-layer-1)

[Post Link](https://x.com/AlvaApp/status/1948348934302339426)