ETH Price Volatility Could Trigger Major Liquidation Event

BoredStaker · 2026-01-31T04:09:36+00:00

Ethereum's price is near critical thresholds that could trigger significant liquidations on centralized exchanges, with $837 million at risk if it drops to $2,805 and $723 million if it rises above $3,100. This sensitivity may lead to increased market volatility.

BoredStaker

2026-01-31 04:09:36

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Ethereum’s price movements remain a critical risk factor that could trigger substantial liquidations across major centralized exchanges. With ETH currently trading at $2.70K, the market is particularly sensitive to price swings that could activate significant liquidation cascades. According to latest Coinglass data analyzed by ChainCatcher, traders holding leveraged positions face immediate liquidation pressure.

The Liquidation Price Levels at Risk

The data reveals two critical price thresholds that could trigger mass liquidations. If Ethereum’s price drops to $2,805, long position holders face cumulative liquidation intensity of approximately $837 million. Conversely, should ETH rally above $3,100, short position traders could face comparable liquidation intensity of around $723 million. Given that current price sits at $2.70K, the market is dangerously close to triggering the long position liquidation cascade.

Market Implications and Current Price Position

These liquidation levels represent critical support and resistance zones that could amplify price volatility further. A breach of either threshold would trigger automatic liquidations, potentially causing cascading price movements that extend beyond the initial liquidation volume. Traders should monitor ETH’s movement within these tight ranges, as the concentrated liquidation levels suggest heightened market sensitivity to sudden price shifts.

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