- ETH will suffer liquidation to the tune of 2.3 billion in case the price dips below 4,072
- More than 1.8 billion short liquidations can be created at above 4499
- Sell signals by TD Sequential, $3,980-$3,860 target lower
Ethereum is priced at 4,693.94, and in the past 24 hours, it has risen by 7.36 percent. Its market cap stands strong at $566.67 billion. Daily volume spikes to $61.42 billion. Such impressive numbers highlight its dominant market position. But looming risks could change the scene fast.
$2.3 Billion in Long Liquidations Loom
Source – X
Ethereum holders, beware. Below the price of $4,072, more than 2.3 billion in long liquidations is likely. This is data direct as it was reported on X by Kshitiz Kapoor in the Ethereum liquidation levels watch.
Any fall below this level can trigger huge sell-offs and squeezes. Such moves can amplify price volatility dramatically. Kapoor further adds that should Ethereum head over $4,499, shorts will have a liquidation risk of one point eight billion dollars.
Price Warning Signals Intensify
Source – X
Ali Chart, one more X analyst, sent a sell signal to Ethereum through the TD Sequential indicator on the daily chart.
According to him, the loss of support at $4,150 will result in a drop in the price of the ETH to either $3,980 or even $3,860. This further introduces prudence to any traders who are long or interested in entering the market at current price points.
Potential $1.3 Billion Liquidation at $5,000
Source – X
Another warning shows that 1.3 billion liquidations await in the event that Ethereum breaks $5,000. This implies enhanced trading activity around the psychological prices of Ethereum. The traders should watch out for the amount of leverage, which can cause rapid price movements.
Current Market Stats Back Up The Risks
Ethereum’s 7-day gain is a solid 30.65%. In spite of the bullish rally, the huge liquidation prices at decisive levels are red flags for the future. Market interest growth is confirmed by the fact that trading volumes increased by almost 30 percent over the past 24 hours, which also increases the volatility risk.
Larger Context Behind Ethereum’s Moves
Recently, the rise in prices of ether has been due to the growth of the network and the demand amongst institutions. In the past months, Treasury companies and ETFs bought an estimated 5 percent of the entire circulating supply.
Stablecoins that do most of their transactions on Ethereum Layer 1 result in persistent demand for ETH to pay gas costs. Government mandates on tokenizing assets further boost underlying demand.
However, it is impossible to neglect the market dynamics of liquidity demand and liquidation traps. Market makers will frequently drive to liquidation price levels to cause forced selling and buying, taking advantage of this churn. This will cause a faster fluctuation in price, as has been the case around the clusters of $4,000 and $4,100.
Prices above the level of 4499 may be able to put the shorts in a tight spot, but prices below the level of 4072 may cause an eruption of long liquidation of over 2 billion dollars. Traders must watch key price zones closely.
