Ethereum Liquidations Could Heighten Market Volatility as Bitcoin Eyes $110,000 Support

  • Over $447M liquidated in one day

  • Ethereum accounted for the largest share (~$176M); Bitcoin saw ~$101M liquidated

  • Major exchanges and real-time liquidation spikes amplified market stress; mid-caps experienced the biggest volatility

Meta description: Crypto liquidations topped $447M in a single day; learn which assets were hit, key support levels for BTC and ETH, and how traders can reduce risk — read now.








What caused the cryptocurrency liquidation wipeout?

Crypto liquidations escalated after concentrated leverage unwindings and real-time spikes in mid-cap token volatility. Rapid price moves on major exchanges triggered stop-loss cascades and margin calls, removing over $447,000,000 in leveraged positions and intensifying near-term market weakness.

How did Bitcoin and Ethereum perform during the sell-off?

Ethereum led the liquidation totals with roughly $176,000,000 removed, while Bitcoin accounted for about $101,000,000. Exchange order-book pressure and abrupt RSI breakdowns reduced buying support and accelerated liquidations across both assets.

Liquidation breakdown (approx.)
Asset Estimated Liquidations Key technical level
Ethereum (ETH) $176,000,000+ 50-day EMA ≈ $4,040
Bitcoin (BTC) $101,000,000 100-day MA support ≈ $111,000–$112,000
XRP / SOL (combined) $25,000,000+ Volatility-driven support zones

Why is ETH more vulnerable than BTC right now?

Ethereum’s correction came after a peak above $4,800 and now trades near $4,200, which left buy-side liquidity thin. The volume of liquidations shows diminished demand, and a renewed surge in selling could push ETH toward $3,600 if the 50-day EMA at ~$4,040 fails to hold.

How can traders manage liquidation risk?

  1. Reduce leverage: Use lower leverage or close portions of positions to limit rapid forced exits.
  2. Set protective stops: Place stop-loss orders at logical technical levels to prevent cascading liquidations.
  3. Monitor on-chain and order-book signals: Watch liquidation heatmaps and exchange order books for concentration risks.
  4. Diversify exposure: Hold a mix of spot and margin positions and avoid concentrating collateral on a single exchange.

Frequently Asked Questions

How much did exchanges contribute to the liquidation event?

Major derivatives venues accounted for the majority of forced closures, with Bybit and Binance showing the largest concentrated liquidation volumes according to the liquidation heatmap data available to traders.

What are the immediate technical levels to watch for BTC and ETH?

Bitcoin’s immediate range is $111,000–$112,000 with a key test near $110,000; a break could target $104,000. Ethereum’s first support is the 50-day EMA near $4,040, with a downside test around $3,600 if selling accelerates.

Key Takeaways

  • Major liquidation event: Over $447M removed in one day, led by ETH and BTC.
  • ETH vulnerability: ETH bore the largest share and faces near-term downside if $4,040 holds fail.
  • Trader risk management: Lower leverage, set stops, and monitor order-book/liquidation heatmaps to limit forced exits.

Conclusion

The recent crypto liquidation event underscores the fragility of a leveraged rally and the importance of active risk management. COINOTAG reporting shows Ethereum and Bitcoin absorbed the largest losses, and traders should watch support levels and on-chain signals closely. Stay informed and adjust exposure as markets evolve.

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