ETH Long and Short Stranglehold: A Showdown of 2.2 Billion Short Positions and 3.3 Billion Long Positions
The cryptocurrency market welcomes a key battle again! Two price levels of ETH hide a 'liquidity storm' that could break the historical high of $4868, triggering concentrated liquidation of 2.218 billion shorts; if it drops below the support of $4600, 3.342 billion longs may face a liquidation avalanche. This long-short showdown is reshaping the short-term trend logic of ETH.
The Chain Reaction of Liquidation: The Life-and-Death Threshold of Longs and Shorts
Liquidation is not just a simple number of forced liquidations, but rather the 'domino effect' of leveraged funds:
Breaking above $4868: Short liquidations trigger forced liquidations by exchanges, releasing huge buying pressure, which may lead to a 'short squeeze' with rising prices attracting follow-up funds to chase the rally, forming a positive feedback loop of 'rising → liquidation → further rise', propelling ETH to a new high; breaking below $4600: Long liquidations trigger a chain reaction of selling pressure, panic may trigger a 'long-killing' stampede as liquidated positions are sold off and stop-loss orders exit, accelerating the downward trend and possibly amplifying the decline.
The Core Logic of Liquidation Intensity: Attention should be paid to the density signals of the 'powder keg'; the liquidation data does not show the exact liquidation amount but rather the relative strength of the 'liquidation clusters.' The more concentrated the leveraged funds are near a price level (the higher the liquidation column), the more intense the chain reaction triggered after a breakout. This means that $4600 and $4868 are not only technical levels but also 'chip accumulation zones' for longs and shorts, and the volatility during a breakout will be amplified exponentially. ETH Game: Bidirectional Traps of Breakthroughs and Breakdowns Currently, the $4600~$4868 range is the 'meat grinder' of long and short forces:
Long Trap: Breaking the historical high may be a 'false breakout'; whales may use liquidations to trigger a rally, attracting follow-up investors only to reverse and crash down, harvesting those who chased high prices; Short Trap: Breaking below the support level may also be an 'induced short' where panic selling is used to wash out positions, quickly pushing up after accumulating at lower levels, trapping shorts.
Keep a close eye on key price levels and gain insight into capital flows and market sentiment. We will continue to track liquidation data and dissect market dynamics to capture trend signals for you. Click to follow for ETH dynamic analysis and strategy references (the crypto market is highly volatile, decisions need independent judgment, and this article is for analysis only).
