09.09.2025 17:03
A swift, one-minute plunge in the price of Ethereum has reportedly precipitated substantial losses for traders, with approximately $2.9 million in leveraged long positions being forcibly liquidated. This sharp downturn in ETH's valuation triggered a cascade of margin calls, effectively erasing nearly all of these long bets. This dramatic unwinding underscores the potent influence that abrupt, short-lived price movements on derivatives exchanges can exert, leading to significant liquidations and ephemeral market volatility.
Within a single hour, the derivatives market saw the liquidation of $2.87 million worth of Ethereum positions, an overwhelming majority of which were longs, accounting for approximately 99% of the total. This imbalance was starkly illustrated by the nearly 5,855% disparity between long liquidations ($2.82 million) and short liquidations ($48,160), a phenomenon that coincided with a brief surge in ETH's price to $4,328. For context, the total liquidations across Bitcoin and Solana during the same period were approximately $511,000 and $537,000, respectively, while the 24-hour total across all markets neared $341.46 million.
The precipitous decline in Ethereum's value, which sent the cryptocurrency briefly to around $4,328, was the direct catalyst for these extensive liquidations. This rapid price depreciation ignited a chain reaction of margin calls, particularly affecting those who had heavily leveraged their long positions. Data compiled by CoinGlass revealed that over the course of an hour, a staggering $2.87 million in ETH positions were liquidated, with the vast majority being long positions, a clear indication of the market's vulnerability to brief, intraday price spikes.
The interplay of high leverage and the dynamics of the order book significantly amplified the price movement and subsequent liquidations. Concentrated risk due to substantial leverage meant that prices were acutely sensitive to even minor downward fluctuations, bringing numerous stop-loss orders and automated margin calls into play simultaneously. The CoinGlass figures vividly depict this scenario, showcasing $2.82 million in long liquidations against a mere $48,160 in short liquidations, a colossal 5,855% imbalance that intensified pressure on the order book and exacerbated the temporary price drop.
