According to ChainCatcher, Coinglass data reveals two key liquidation levels for Ethereum (ETH). If ETH breaks above $1,737, the cumulative short liquidation intensity on major centralized exchanges (CEXs) would reach $908 million. Conversely, if ETH drops below $1,577, the cumulative long liquidation intensity would reach $573 million.
Liquidation intensity is a metric that calculates the potential value of forced liquidations based on current open interest, reflecting market risk at specific price levels. The data aggregates perpetual contract positions from major exchanges such as Binance, OKX, and Bybit. Liquidation clusters are often regarded as price magnets, potentially accelerating breakouts or downtrends.
Traders frequently use Coinglass's liquidation heatmap to assess short-term support and resistance. It is important to note that actual liquidation processes are influenced by leverage multipliers, position distribution, and market depth, so the intensity figure is a theoretical estimate. Nonetheless, it serves as a crucial indicator of market sentiment and volatility risk. In the crypto derivatives market, liquidation events are a key driver of sharp price movements. Large-scale liquidations can cause rapid price deviations and trigger cascading margin calls. Therefore, market participants closely monitor these critical liquidation levels.