Ethereum News Today: Ethereum's $4.7K-$4.9K Range Holds $2.5B in Traded Bets Waiting to Explode

Ethereum’s recent price movements have triggered significant liquidation events on crypto derivatives markets, with potential implications for both long and short positions. According to Coinglass data, if Ethereum (ETH) falls to $4,700, approximately $1.121 billion in long liquidations could be triggered. Conversely, a rise to $4,900 could result in $1.393 billion in short liquidations, indicating a high concentration of leveraged positions at these critical levels [4].

These figures underscore the growing volatility and leverage exposure in the Ethereum market, especially as the asset continues to gain institutional traction. The price surge to a record high of $4,885 earlier in the month, following remarks by Federal Reserve Chair Jerome Powell, led to a $388 million liquidation event in the previous 24 hours—largest among all crypto assets. This was part of a $769 million total market liquidation, affecting over 183,000 traders. The largest individual liquidation was a $10 million ETH swap order on OKX, an unusually high figure for the asset [1].

Liquidations in leveraged trading reflect the fragile positioning of traders in the crypto market. When prices move rapidly in one direction, leveraged positions are often forced to close automatically to prevent further losses. In the case of Ethereum, both long and short positions are concentrated at key support and resistance levels, increasing the risk of cascading liquidations. Analysts have noted that a wave of long liquidations could reset the market and create a more balanced environment, while short liquidations may propel the price higher [1].

Institutional buying and treasury allocations have been cited as key factors fueling Ethereum’s recent rally, with some analysts suggesting the asset is becoming Wall Street’s preferred blockchain. Samir Kerbage, chief investment officer at Hashdex, stated that Ethereum’s new all-time high signals broader investor demand beyond just Bitcoin. He further noted that ETH could surpass $10,000 as stablecoin solutions for U.S. payments gain traction [1]. The year-to-date return for Ethereum stands at 45%, reinforcing its role as a cornerstone of the digital asset ecosystem.

However, the market is also facing potential downward pressures. Recent data from Coinglass indicates that if ETH drops to $4,200, approximately $2 billion in long positions could be liquidated [4]. This is exacerbated by ETF outflows and whale selling activity. SoSo Value data showed that Ethereum ETFs recorded a net outflow of $196.62 million on August 18, with BlackRock’s ETHA leading the outflow at $87.16 million. On-chain analytics also revealed that whales, such as Longling Capital, are offloading ETH, locking in profits and adding to short-term bearish pressure [4].

The interplay of bullish treasury purchases and bearish selling pressures highlights the complexity of Ethereum’s current market dynamics. While BitMine and other treasury companies continue to accumulate ETH, pushing the price higher, large-scale liquidation risks at key levels remain a concern. The balance between institutional adoption and market volatility will likely determine Ethereum’s trajectory in the coming months.

Source: [1] Ethereum Bets See Unusually High $400M Liquidations as Traders Target $10K ETH (https://www.coindesk.com/markets/2025/08/23/ethereum-bets-see-unusually-high-usd400m-liquidations-as-some-now-target-usd10k-eth) [2] Ethereum Bets See Unusually High $400M Liquidations as ... (https://finance.yahoo.com/news/ethereum-bets-see-unusually-high-064733802.html) [3] Ethereum's Surge: Almost $400 Million Liquidated After ... (https://media.hubtas.com/2025/08/23/ethereums-surge-almost-400-million-liquidated-after-rally-as-traders-bet-on-10k-eth/) [4] Ethereum Price Crash: $2 Billion In Losses Is Waiting For ... (https://www.mitrade.com/insights/news/live-news/article-3-1051210-20250819)