Ethereum ($ETH) is trading at $4,472, but behind the steady price action lies a storm brewing. Analysts warn that if ETH climbs toward the $4,900 mark, over $3 billion in leveraged positions could be liquidated — setting the stage for intense volatility across the crypto market.
🚨 $3B Liquidation Cluster at Risk
A well-known trader recently pointed out that liquidation clusters are heavily concentrated between $4,442 and $4,900, with the bulk of them tied to long positions. If ETH continues its climb, this cluster could be wiped out, triggering one of the largest liquidation events in recent months.
This isn’t just market noise — billions of dollars in leveraged bets hang in the balance, and a breakout could act like a fuse to an already packed powder keg.
🔄 Domino Effect Could Shake the Market
Liquidations in crypto markets often create a chain reaction. Once the first wave of positions gets wiped out, the forced buy/sell orders can push prices further, setting off additional liquidations. This self-feeding cycle has the potential to magnify volatility in a short span of time.
Exchanges are already seeing tightening liquidity as traders position themselves ahead of this critical zone. The $4,900 level isn’t just another resistance — it’s a psychological barrier that may decide whether ETH enters a phase of euphoria or faces a sharp pullback.
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✨ Bottom Line: Ethereum is approaching a tipping point. If $ETH breaks above $4,900, it could unleash a $3B liquidation storm that shakes the entire crypto market.