Ethereum News Today: Ethereum Nears $4000 Liquidation Threshold With $677M Short Pressure

Generated by AI AgentCoin World
Friday, Aug 8, 2025 12:21 am ET1min read
ETH
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Aime RobotAime Summary

- Ethereum's $4000+ price level triggers $677M short liquidation risk on major CEX platforms, per Coinglass data.

- A $3800 drop would trigger $1.247B long liquidation pressure, highlighting leveraged market exposure.

- Liquidation charts show relative cluster intensity, not exact position values, indicating potential price reaction magnitude.

- Traders warned to monitor these thresholds as forced unwinding could amplify short-term volatility in leveraged crypto markets.

According to data from Coinglass, if

Ethereum
(ETH) were to break above the $4000 level, the cumulative short liquidation pressure on major centralized exchanges (CEX) would reach approximately $677 million [1]. This suggests that a significant number of short positions are currently at risk of being liquidated if the price rises to this level. The data further indicates that the liquidation intensity—measured as the relative significance of liquidation clusters—increases sharply at this price level, which could trigger a self-reinforcing price movement driven by forced unwinding of leveraged positions.

On the flip side, if Ethereum were to drop below $3800, the cumulative long liquidation pressure on major CEX platforms would amount to $1.247 billion. This highlights the high volatility and leverage currently embedded in the market, as large numbers of traders are either shorting or long on the asset using leveraged instruments.

It is important to note that liquidation charts do not represent the exact number of contracts or total value of positions that are at risk of liquidation. Instead, they illustrate the relative intensity of liquidation clusters in comparison to neighboring price levels. In other words, the charts reflect the potential impact of liquidation activity on price movement [1]. A taller bar indicates a higher likelihood of a pronounced price reaction when that level is reached, as traders' positions are forcibly closed and trigger further price movement.

The data suggests that traders and market participants should remain vigilant around the $4000 and $3800 levels, as crossing these thresholds could lead to significant short-term price swings due to large-scale liquidation events. The leverage dynamics in the crypto markets remain a key factor in shaping price action, particularly in fast-moving environments such as those seen in Ethereum trading.

Source: [1] If Ethereum Breaks $4000, Mainstream CEX Cumulative Short Liquidation Pressure Will Reach $677 Million (https://www.theblockbeats.info/en/flash/306434)