ETH Critical Price Level Conflict: Long and Short Liquidations Could Trigger $2.141 Billion Market
On August 18th, the cryptocurrency market focused on the crucial price level for Ethereum (ETH). According to Coinglass data, if ETH breaks through $4,512, cumulative short position liquidations on major centralized exchanges (CEXs) will reach $2.141 billion; conversely, if it falls below $4,091, cumulative long position liquidations will reach $1.199 billion, imminently triggering a fierce battle between bulls and bears at these key price levels.
The ETH price is currently fluctuating within a critical range, with bulls and bears engaged in a fierce battle around these two levels. For bulls, $4,512 is a significant resistance level. A successful breakout would not only trigger a large number of forced short position liquidations, but also generate buying pressure that could further push ETH prices upward, opening up new room for growth. Meanwhile, bears view $4,091 as a crucial support level. If the price falls below this level, the pressure from long position liquidations could trigger a chain reaction, causing ETH prices to plummet. From a market perspective, overall cryptocurrency market volatility has intensified recently, leading to significant divergence in investor expectations regarding ETH's future. Some investors are optimistic about ETH's continued development in areas like Layer 2 and DeFi, believing it has the potential to break through resistance levels. Others, however, are concerned about factors such as the macroeconomic environment and regulatory pressure on the cryptocurrency market, and are cautious about ETH's potential upside.
The outcome of this key price swing will have a significant impact on ETH's future trajectory. If bulls prevail and ETH breaks through $4,512, it could attract further capital and boost market sentiment. If bears prevail and the price falls below $4,091, it could trigger market panic and lead to further selling pressure. Investors should closely monitor price trends and be cautious in anticipating significant fluctuations.
