Ethereum Surpassing $2,900 Could Trigger $1.31 Billion Short Liquidations

According to data from Coinglass, if Ethereum surpasses $2,900, the cumulative short liquidation intensity across major centralized exchanges (CEXs) will reach $1.31 billion. This significant figure highlights the potential market impact if Ethereum's price reaches this threshold. The liquidation chart, which does not represent the precise number of contracts waiting to be liquidated or the exact value of liquidated contracts, indicates the relative importance or intensity of each liquidation cluster compared to nearby clusters. Taller "liquidation bars" suggest more intense reactions due to liquidity waves when those price levels are hit.

Conversely, if Ethereum drops below $2,700, the cumulative long liquidation intensity across major CEXs will reach $1.28 billion. This dual scenario underscores the volatility and potential for substantial market movements in either direction. The liquidation chart serves as a visual tool to illustrate the potential impact on the market when the asset price reaches certain levels, providing insights into the market's sensitivity to price changes.

It is important to note that the liquidation chart does not provide exact numbers of contracts waiting to be liquidated or the precise value of liquidated contracts. Instead, it offers a comparative analysis of the intensity of liquidation clusters. This information is crucial for traders and investors to understand the potential market reactions and plan their strategies accordingly. The chart's taller bars indicate more intense liquidation events, which can lead to significant price movements and market volatility.