Ethereum News Today: Over $100M in crypto longs liquidated in one hour amid market plunge

Over $100 million in long positions across Bitcoin and Ethereum were liquidated within a single hour on August 18, 2025, marking one of the most intense corrections in recent crypto market history [1]. This event unfolded amid sharp price declines, triggered by a sudden market reversal linked to U.S. tariff policy developments. The liquidation primarily impacted leveraged positions, where traders had bet on continued price appreciation, leading to forced sell-offs and automated stop-loss orders accelerating downward price momentum [1].

The impact was widespread, affecting not only Bitcoin but also Ethereum and XRP. Ethereum and XRP alone experienced over $100 million in long position liquidations within a 24-hour period [1]. The data revealed that nearly 98% of the liquidated positions were long bets, indicating a strong imbalance in market exposure. The use of leverage further amplified the sell-off, as forced closures triggered additional downward pressure on prices [1].

The liquidations occurred against a backdrop of prior volatility. In the 24 hours leading up to the event, more than $730 million in positions had already been liquidated, signaling growing instability and overexposure [1]. As the market continued to correct, Bitcoin fell below $115,000, while Ethereum dipped below $4,300 [1]. The scale of the losses highlights the inherent risks of using high leverage in a market known for its rapid and unpredictable movements.

Analysts have pointed to the self-reinforcing nature of such corrections, where leverage and algorithmic stop-loss triggers accelerate price declines. This dynamic underscores the dangers of overconfidence in upward trends and the necessity of disciplined risk management [1]. The event serves as a clear example of how even short-term volatility can lead to catastrophic losses for traders who are overleveraged and unprepared for sudden reversals.

The sudden market shift also drew comparisons to previous large-scale liquidation events, highlighting the sensitivity of cryptocurrency markets to macroeconomic news and regulatory developments [1]. As traders and institutions assess the aftermath, the focus remains on how market participants can adapt their strategies to navigate future volatility. For now, the one-hour liquidation of $100 million in long positions stands as a cautionary tale about the perils of high leverage and the importance of prudent trading practices in an environment where uncertainty is a constant [1].

Source:

[1] AInvest (https://www.ainvest.com/news/100-million-crypto-longs-liquidated-hour-market-plunges-2508/)