Ethereum News Today: Ethereum Approaches $4550 Triggering $1.421 Billion Short Liquidation Risk

If Ethereum surpasses $4550, the cumulative short liquidation pressure on major centralized exchanges (CEXs) is expected to reach $1.421 billion, according to Coinglass data [1]. This threshold represents a significant level of short exposure, suggesting that a price breakout could trigger a cascade of liquidations across major platforms. Conversely, if Ethereum falls below $4350, the total long liquidation strength on major CEXs would reach $1.263 billion, highlighting the substantial leverage on both sides of the market.

The liquidation chart provided by Coinglass is not a direct measure of the number or value of liquidated contracts, but rather an indicator of the relative impact of each liquidation cluster at specific price levels [1]. The height of the liquidation bar reflects the potential intensity of market reactions when the price approaches or surpasses a certain threshold. A higher bar indicates a greater likelihood of a liquidity cascade and a stronger price reaction when that level is reached.

This data underscores the heightened volatility and leveraged positioning in the Ethereum market. Traders and investors are closely monitoring the $4550 level, as a sustained break above it could lead to significant short-covering and further upward momentum. On the flip side, a breakdown below $4350 could trigger large long positions to be liquidated, potentially accelerating a downward spiral.

The implications of these figures highlight the fragile equilibrium in the current market structure. As Ethereum approaches key psychological and technical levels, the potential for rapid and large-scale liquidations becomes a critical factor for market participants. While Coinglass data does not offer predictions, it serves as a real-time snapshot of the leverage distribution and potential reaction points across major CEXs.

Source:

[1] BlockBeats, "If Ethereum Surpasses $4550, the Cumulative Short Liquidation Pressure on Major CEXs Will Reach $1.421 Billion."

Url: https://www.theblockbeats.info/en/flash/307722