Ethereum faces potential liquidation risks at the $4,200 level, raising concerns among traders. The market is awaiting key economic events.
Liquidation Risks at $4,200
As of press time, Ethereum is trading at $4,280, down 6% in the last 24 hours. Analysts are closely monitoring the $4,200 level, below which over $2 billion in long positions could be at risk of liquidation. There is a high concentration of liquidations at this level, which could trigger a cascade of forced selling on exchanges. Cipher X indicates that breaking this level may lead to significant sell-offs.
Record Short Positions on Ethereum
At the same time, short positions on Ethereum have been increasing. Reports indicate that short interest through CME futures has reached an all-time high. Ongoing accumulation by ETFs adds a layer of tension between spot demand and futures positioning. If Ethereum holds current levels and turns upward, traders are watching for a possible short squeeze that could lead to sharp price fluctuations.
Key Events for the Crypto Market
Several events this week may shape market direction, including the FOMC minutes on Wednesday, U.S. jobless claims on Thursday, and remarks from Fed Chair Jerome Powell on Friday. Given the heavy liquidation zone and overall market unease, traders are bracing for potential volatility around each event.
With the $4,200 level becoming a key point for liquidation risks and record short positions, the Ethereum market finds itself in a state of uncertainty. Anticipation of major economic data adds to the caution.
