Ethereum’s Key Price Levels: What a Break Above $4600 or Drop Below $4300 Means for Liquidations

On August 18th, data from Coinglass revealed intriguing insights into the Ethereum market. Should the price surpass $4600, the cumulative short liquidation on major centralized exchanges (CEXs) may reach an impressive $1.1 billion. Conversely, a decline below $4300 could lead to a staggering $1.489 billion in cumulative long liquidations across these platforms. It is important to note that the liquidation charts do not specify the exact quantity of contracts being liquidated; instead, they illustrate the relative intensity of liquidation clusters. By assessing these intensities, traders can gauge the potential market response when Ethereum approaches these critical price levels. A higher intensity, represented by an elevated ‘liquidation bar,’ suggests that reaching these thresholds could trigger significant price volatility due to a liquidity cascade across the market.