1. Key Liquidation Zones (Support & Resistance)
Based on the chart:
Support Zone: Around $2700–$2750
There's a dense cluster of liquidation levels below the current price. This implies many longs will be liquidated if ETH drops into this range, potentially creating a temporary support as whales defend positions.
Resistance Zone: Around $2850–$2900
Significant liquidations expected above $2850. If ETH spikes into this area, it might face selling pressure as shorts get squeezed or traders take profit.
2. Potential Trading Strategies
Here are a few approaches based on the current setup:
A. Range Trading Strategy
Buy near $2700–$2750 with tight stop-loss just below support
Sell near $2850–$2900
Use low leverage to avoid getting caught in liquidation sweeps
B. Breakout Strategy
If ETH breaks above $2900 with volume: look for a long entry as it clears major short-liquidation levels (momentum likely to continue).
If ETH breaks below $2700, a short position could target lower levels like $2600–$2650.
C. Liquidation Hunt Awareness
Watch for fakeouts:
Large players may push price into liquidation zones to trigger a cascade (known as a liquidity grab), then reverse direction.
Be cautious during such spikes; use alerts, not limit orders blindly placed near liquidation zones.
3. Risk Management
With $74.82M in liquidation leverage currently at risk (very high), the next few price moves could be volatile and sharp.
Avoid overleveraging.
Set alerts around $2750 and $2900 — high-probability areas for major market reactions.