Ethereum News Today: Ethereum's Liquidation Drama Unfolds Amid $4,500 Pull and Bullish Bets

In the wake of the non-farm payroll data release, Ethereum (ETH) experienced heightened volatility, resulting in significant liquidation events across the crypto market. According to Coinglass data, total liquidations in the past hour amounted to $124 million, with long positions accounting for $123 million and short positions for $1.9164 million. ETH alone faced $34.51 million in liquidations, making it one of the most affected assets during this period [1].

One of the most notable events involved a whale or institutional actor who suffered a massive loss of $10.67 million after taking a long position in ETH post the release of the non-farm data. The trader’s aggressive bet appears to have been triggered by market optimism surrounding the data, which often influences macroeconomic sentiment and, by extension, crypto trading behavior [1].

Despite the liquidation, the broader ETH market exhibits a bullish tilt. Coinglass data reveals a long/short ratio of 1.01, indicating that more traders are holding bullish positions in the futures market than bearish ones. This slight edge suggests growing confidence among traders that Ethereum’s price will continue to rise in the near term [2].

Furthermore, ETH’s price has been oscillating within a defined horizontal channel since August 12, fluctuating between $4,211 and $4,664. A liquidity cluster has formed near the $4,520 level, which is currently above the altcoin’s trading price of $4,385. Liquidation heatmaps—tools that show concentrated areas of leveraged positions—suggest that the price is likely to be pulled toward the $4,500 zone. This could serve as a catalyst for a breakout if bullish momentum continues [2].

However, the market remains precarious. If ETH drops below the $4,211 support level, mainstream exchanges could see a cumulative long liquidation intensity of up to $3.151 billion, signaling a potential sharp decline. On the flip side, a sustained break above $4,664 could lead to a retest of ETH’s all-time high of $4,957. This scenario underscores the high-stakes nature of leveraged trading in a market that remains highly sensitive to macroeconomic shifts [2].

Notably, a separate incident involving trader James Wynn has drawn attention as a potential contrarian signal. Wynn’s wallet was liquidated six consecutive times on 25x leveraged ETH long positions, a streak flagged by Onchain Lens as a possible inverse indicator. While no single trader dictates market direction, repeated liquidations like Wynn’s can serve as a cautionary sign for others to reassess their positions [3].

Source:

[1] Data: In the past hour, the total liquidation of contracts ... (https://www.chaincatcher.com/en/article/2203690)

[2] Ethereum at Crossroads: Will $4500 Liquidity Pull Win ... (https://www.mitrade.com/insights/news/live-news/article-3-1096401-20250904)

[3] ETH 25x Longs Liquidated 6 Times: Onchain Lens Flags James Wynn Wallet as Potential Contrarian Signal (https://blockchain.news/flashnews/eth-25x-longs-liquidated-6-times-onchain-lens-flags-james-wynn-wallet-as-potential-contrarian-signal)