According to ChainCatcher, the latest data from Coinglass reveals significant liquidation pressure around key price levels for Ethereum (ETH). If ETH falls below $1,654, the total cumulative long liquidation intensity on major centralized exchanges (CEXs) could reach $904 million. Conversely, if ETH breaks above $1,827, the cumulative short liquidation intensity could hit $617 million.
Long liquidation intensity represents the total value of long ETH contracts that may be force-liquidated when the price drops to a specified level. The $904 million in long liquidation suggests that a large number of leveraged long positions are clustered below $1,654. If the price tests this support, it could trigger a cascade of liquidations, amplifying downward pressure. This serves as a crucial liquidity monitoring metric for the market.
Meanwhile, the $617 million short liquidation intensity above $1,827 indicates significant short positions are concentrated at higher prices. Should ETH break through this resistance, the forced covering of short positions could further propel prices upward, creating a short squeeze effect. Traders often view such liquidation levels as potential price reversal zones.