ETH Faces Critical Liquidation Zones with 5.14% Buffer Before Record Peak

mev_me_maybe · 2025-12-26T20:05:29+00:00

Ethereum is nearing its all-time high of $4,868, with significant liquidation clusters forming. A breakthrough could lead to $1.23 billion in short liquidations, while a drop below $4,500 risks $1.252 billion in long liquidations, highlighting a volatile trading scenario.

mev_me_maybe

2025-12-26 20:05:29

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Ethereum is trading tantalizingly close to its all-time high, sitting just 5.14% below the $4,868 mark it previously reached. Recent price action has pushed ETH beyond $4,600, setting up a particularly interesting scenario for derivatives traders monitoring liquidation dynamics across major exchanges.

The Bull-Side Liquidation Trigger

Should Ethereum’s bulls sustain momentum and guide the asset toward its historical peak of $4,868, the impact on short positions would be substantial. According to liquidation analytics from Coinglass, breaking through this resistance level would trigger approximately $1.23 billion in cumulative short liquidation across mainstream centralized exchanges. This concentration of liquidation pressure at the ATH zone suggests that shorts have built defensible positions around this critical price barrier.

The Bear-Side Risk Zone

The downside presents an equally significant liquidation cluster. If ETH falls below the $4,500 support level, long positions face a comparable liquidation storm, with $1.252 billion in accumulated long liquidation intensity ready to cascade across CEX platforms. This near-symmetrical liquidation structure on both sides reveals how leveraged traders have positioned themselves around key price levels.

Understanding Liquidation Intensity

It’s worth clarifying how liquidation charts function: they don’t represent exact contract counts or precise liquidation volumes in isolation. Instead, these columns visualize relative intensity—showing how pronounced each liquidation cluster is compared to its neighboring zones. A taller liquidation column indicates a zone where significant price impact would occur if the market reaches that level, as the resulting liquidity waves could trigger cascading forced position closures.

The proximity of ETH to its ATH, combined with these sizable liquidation zones on both sides, creates a high-stakes trading environment where price discovery could swing dramatically in either direction.

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