Ethereum News Today: Ethereum Near $4,100 and $3,900 With $864M Short and $668M Long Liquidation Risk

According to Coinglass data, Ethereum (ETH) faces a significant level at $4,100, where a potential break above this threshold could trigger a cumulative short liquidation intensity of $864 million on mainstream centralized exchanges (CEXs). This level represents a critical resistance point, with the intensity reflecting the potential for a sharp price reaction due to cascading liquidations. The data suggests that a successful breakout could generate significant upward momentum as traders with short positions face margin calls and forced closures [1].

On the flip side, if Ethereum drops below $3,900, the cumulative long liquidation intensity on major CEXs is expected to reach $668 million. This indicates that the market could experience a sharp downward correction should the price fail to hold above the key support level. The movement below $3,900 could expose a large number of long-position holders to liquidation risk, further amplifying downward pressure [1].

It is important to note that the liquidation chart does not represent the exact number or value of contracts being liquidated. Instead, the bars indicate the relative importance of each liquidation cluster compared to others. In other words, the intensity shown on the chart reflects the potential impact on price movement when the market reaches a specific level. A higher bar suggests a more significant liquidity cascade effect, which could lead to pronounced price volatility [1].

The analysis highlights the fragile balance between long and short positions in the Ethereum market. Traders and investors are closely monitoring these levels, as a breakout or breakdown could trigger large-scale liquidation events that amplify market movements. While these projections are based on existing leverage data, they do not represent forecasts of actual price movements. Rather, they outline the potential consequences should Ethereum reach these critical levels [1].

Given the high liquidation intensity observed at both $4,100 and $3,900, the market is currently at a pivotal moment. The next few sessions will be crucial in determining whether Ethereum can consolidate above the resistance or if it will be forced lower, exposing long positions to further risk. Market participants are advised to remain cautious and monitor the price action closely as these levels are approached.

Source: [1] If Ethereum breaks above $4,100, the mainstream CEX total short liquidation volume will reach $864 million. (https://www.theblockbeats.info/en/flash/306546)