Ethereum News Today: Ethereum's $4K Pivotal Point: Bearish Dominance Could Trigger $979M Liquidations

Ethereum's price movement around the $4,000 threshold has become a focal point for market participants, as data from Coinglass indicates that if the cryptocurrency surpasses this level, cumulative short liquidation pressure on mainstream centralized exchanges (CEXs) could reach $221 million. This figure, derived from liquidation intensity metrics, highlights the concentration of leveraged short positions at this critical price level. Conversely, a drop below $3,900 could trigger $185 million in long liquidation pressure, underscoring the volatility embedded in Ethereum's derivatives market .

The current bearish sentiment is further reflected in Ethereum's Open Interest Weighted Funding Rate, which has fallen to -0.0345, its lowest level on record. This metric, which gauges the balance between bullish and bearish positions in the derivatives market, suggests that short sellers dominate the $42.4 billion in open interest across Ethereum contracts. Such an imbalance raises the risk of deeper price corrections, particularly as institutional investors have also retreated, with $174 million in outflows recorded through Ethereum ETFs over a single trading session Ethereum Crashes Below $4K As $19B Liquidation Rocks Market^[1].

While the $221 million short liquidation estimate is specific to the $4,000 level, other analyses highlight broader risks. For instance, Coinglass data cited by COINOTAG notes that a $4,000 breakout could also trigger $979 million in short liquidations, while a $3,800 drop may result in $917 million in long liquidations. These figures, however, reflect liquidation intensity as a relative measure rather than exact contract values. Higher liquidation bars on these charts indicate stronger market reactions due to liquidity waves, but they do not specify the precise number of contracts at risk Ethereum Faces $979 Million Short Liquidation Surge if Price Breaks $4,000^[2].

The interplay between technical indicators and market positioning has drawn attention from analysts. For example, BitMine, a major Ethereum holder, recently accumulated 27,256 ETH worth $104.24 million despite a $1.9 million floating loss, signaling confidence in a potential rebound. This activity aligns with broader on-chain data showing $677 million in long-term Ethereum inflows over the past day, suggesting that some investors view the current downturn as an accumulation opportunity Ethereum Crashes Below $4K As $19B Liquidation Rocks Market^[1].

However, macroeconomic factors complicate the outlook. Recent U.S. policy announcements, such as Trump's proposed tariffs, have historically triggered sharp liquidation events, with Ethereum's price briefly dropping below $4,000 amid a $19 billion market-wide selloff in October 2025. While such events are often short-lived, they underscore the sensitivity of leveraged positions to geopolitical and regulatory shifts Ethereum Price Movements Could Trigger Significant Liquidations^[3].