Ethereum News Today: Ethereum's $4,400 Tipping Point: A $709M Liquidation Looms

Ethereum’s price movement near key levels has intensified discussions among traders and analysts regarding the potential for significant liquidation events on major centralized exchanges. According to Coinglass data, should Ethereum break through the $4,400 mark, the total open interest liquidation on major centralized exchanges (CEX) would reach approximately $709 million. This threshold has become a focal point for market participants, as crossing it could trigger a cascade of long liquidations or, conversely, a surge in buying pressure from short-covering activity.

The current price range for Ethereum is between $4,200 and $4,500, with a critical resistance zone forming at $4,400–$4,500. If Ethereum manages to break above this range, analysts suggest it could target levels as high as $4,550–$4,800, depending on on-chain metrics and broader market sentiment. On-chain data has shown increased activity in the staking and transaction volumes, which some analysts view as long-term bullish signals for the asset.

Conversely, Ethereum’s price remains under pressure from a key support level at $4,200. If this level is breached, the liquidation risk increases significantly, with estimates suggesting that a drop below $4,101 would trigger $1.649 billion in long liquidation intensity on major CEXs. This is a substantially higher figure compared to the $709 million threshold associated with the $4,400 level. A further decline could push Ethereum down toward $4,000 or even $3,600 if the downward momentum intensifies.

Market analysts have also observed a broader trend in Ethereum's exchange balance, which has turned negative for the first time in recorded history. This development indicates that more tokens are being withdrawn from trading platforms than deposited, potentially signaling reduced selling pressure and growing investor confidence. Analysts such as Cas Abbe have highlighted this as a bullish structural shift, suggesting that the reduced exchange inventory may support a future price rally.

On the technical front, Ethereum is currently navigating a horizontal channel, oscillating between resistance at $4,664 and support at $4,211. Coinglass data indicates a concentration of liquidity around the $4,500 level, making it a potential magnet for price action. Additionally, the long/short ratio for Ethereum has risen to 1.01, reflecting a slight but notable tilt toward bullish sentiment among futures traders. This ratio measures the balance of long and short positions in the futures market, with a reading above 1 indicating a stronger inclination toward price increases.

The market is closely watching whether Ethereum can break above the $4,500 resistance level, which could set the stage for a move toward its historical high of $4,957. However, if the price falls below $4,211, a further decline to $3,626 remains a risk. Traders are advised to remain cautious as the market remains highly volatile, with both technical levels and macroeconomic factors influencing price behavior.

Source: [1] Ethereum price prediction | Is $4200 about to collapse? (https://crypto.news/ethereum-price-prediction-is-4200-about-to-collapse/) [2] If ETH falls below $4101, the cumulative long liquidation ... (https://www.chaincatcher.com/en/article/2204127) [3] Ethereum Exchange Balance Turns Negative For The First ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1101920-20250907) [4] Ethereum at Crossroads: Will $4500 Liquidity Pull Win ... (https://www.mitrade.com/insights/news/live-news/article-3-1096401-20250904)