According to Coinglass data, Ethereum (ETH) is facing significant liquidation pressure around two key price levels. If ETH breaks above $1,737, the cumulative short liquidation intensity on major centralized exchanges (CEXs) will reach $908 million. This suggests that a large number of short positions could be forced to close, potentially fueling upward momentum.
Conversely, if ETH drops below $1,577, cumulative long liquidation intensity on major CEXs will reach $573 million. This indicates a concentration of long positions near that level, which could trigger cascading liquidations and exacerbate downward pressure if the price declines.
The liquidation intensity metric reflects the total notional value of contracts that could be liquidated when the price hits a specific level. It is commonly used by derivatives traders as a reference for potential support and resistance. Combined, the two directions account for over $1.4 billion in potential liquidation intensity, highlighting the significant amount of leveraged positions accumulated in a narrow range.
It is worth noting that liquidation data is based on exchange order books and has certain latency; actual liquidations may vary due to changing liquidity conditions. Traders often combine liquidation clusters with other technical analysis tools to gauge short-term price direction.