10.09.2025 04:40

The cryptocurrency market is on edge as significant liquidation events loom for Ethereum, based on data compiled from internet sources. An analysis of major centralized exchanges (CEXs) reveals that a surge in Ethereum's price above the $4,400 mark could trigger a substantial liquidation of short positions, estimated at a staggering $1.868 billion. This influx of liquidations signifies a point where a large volume of traders betting on a price decrease would be forced to close their positions, potentially accelerating an upward price movement.

Conversely, the downside is equally pronounced. Should Ethereum experience a downturn and fall below the $4,200 threshold, a considerable cascade of long liquidations is anticipated, potentially reaching approximately $2.048 billion. Such an event would indicate a mass unwinding of positions by traders expecting a price rise, likely exacerbating a downward price trend and causing a sharp decline.

These figures, as reported by Coinglass, should be understood as indicators of intensity rather than exact contract values. They highlight concentrations of liquidity within the order books of major exchanges, illustrating where substantial trading volumes are positioned. The visualization of these liquidation levels, as presented by COINOTAG, graphically represents the cumulative impact of these potential market events. Larger liquidation bars on charts signify more significant liquidity pockets, suggesting a more forceful market reaction if prices breach these critical levels.

Market observers and participants can leverage this detailed liquidation mapping to gauge potential execution risks. By closely monitoring the depth of order books and open interest metrics, traders can gain a clearer perspective on the forces that could influence price action and prepare their strategies accordingly. This granular insight into liquidation levels offers a valuable tool for navigating the inherent volatility of the cryptocurrency landscape.