Ethereum News Today: Ethereum bears face $108.88 million in liquidations as crypto derivatives market corrects

The cryptocurrency derivatives market experienced a sharp correction on August 1, 2025, with $351.86 million in trader liquidations over the past 24 hours. Ethereum (ETH) was the hardest-hit asset, accounting for $108.88 million in losses, while Bitcoin (BTC) recorded $56.01 million in liquidations. The data reflects a significant shift in market sentiment and leverage exposure, particularly among ETH traders who had positioned for further declines that did not materialize [1].

Ethereum’s price ranged between $3,357 and $3,735 during the period, closing at $3,645.91. Although the move was relatively modest in percentage terms, the liquidation volume was nearly double that of Bitcoin, indicating a much higher level of leverage or misalignment in positioning. ETH’s short liquidations reached $43.08 million, more than triple the $14.35 million seen in BTC short positions. This suggests that many traders anticipated a bearish continuation but were caught off guard by the market’s resilience [2].

Bitcoin, meanwhile, traded between $111,971 and $116,235, closing at $114,291. While BTC’s price remained relatively stable, its steady trajectory shielded it from more extreme liquidation pressures. The long-biased skew in liquidations was evident, with $238.97 million in long positions wiped out compared to $112.88 million in shorts. This highlights the widespread optimism for a bullish breakout, which was ultimately undermined by range-bound price action and fading rallies [1].

Binance and Bybit were the platforms with the highest liquidation activity, recording $138.18 million and $102.87 million, respectively. Gate.io added another $42.18 million, with smaller contributions from OKX and HTX. Hyperliquid, while less dominant in total volume, recorded the largest single liquidation at $5.17 million on a BTC-USD pair. The concentration of liquidations on a few major exchanges underscores the density of leveraged trading activity on these platforms [2].

Despite a sharper -2.25% price drop to $164.44, Solana (SOL) saw limited liquidations at $16.97 million. This could suggest a lower leverage ratio or less directional conviction among traders, in contrast to the more aggressive positioning observed in ETH and BTC. The data also revealed that SOL shorts slightly outweighed longs over the 24-hour period, differing from the overall bullish tilt seen in the larger-cap assets [1].

The total liquidations reflect the fragility of leveraged positions in the crypto derivatives market, where even moderate price movements can result in significant capital losses. The event highlights the heightened volatility and the interconnectedness of digital assets, as even a major asset like Bitcoin remains vulnerable to large-scale margin calls. With Ethereum bearing the brunt of the losses, the incident underscores the risks of aggressive leverage in the derivatives space [1].

Source:

[1] https://cryptoslate.com/insights/market-sees-351-million-in-liquidations-as-eth-takes-most-losses/

[2] https://cryptorank.io/news/feed/1627b-market-sees-351-million-in-liquidations-as-eth-takes-most-losses