Ethereum Poised for Volatility: Key Liquidation Thresholds at $3800 and $3600 Explained

According to data from Coinglass, Ethereum’s price is currently at a critical juncture. Should ETH surpass the $3,800 level, the cumulative short liquidation across leading centralized exchanges (CEXs) could exceed $521 million. In contrast, a decline below the $3,600 threshold may lead to the accumulation of long liquidations reaching a staggering $652 million. This indicative metric underscores the inherent volatility within the cryptocurrency market.

It’s important to note that the liquidation data does not specify the precise number of contracts set for liquidation or the exact financial implications involved. Instead, the liquidation chart illustrates the relative significance of each liquidation cluster in relation to others. Thus, the graphical representation serves to indicate the potential market momentum tied to specific price points, with taller liquidation bars suggesting a heightened probability of market reactions as these thresholds are crossed.

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