Ethereum

August 26, 2025 at 23:35

Ethereum bears emerge after $11k long liquidations near $4,589.71

Ethereum experienced significant long liquidations at the $4,589.71 level, with about $11k in long positions wiped out. The move signals renewed selling pressure and risk-off sentiment around ETH prices.

In the current setup, this liquidation event hints at potential near-term weakness unless buyers return with conviction. Traders should watch for follow-through selling, a test of nearby support, or a shift in momentum indicators signaling a bounce or further downside.

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Analysis

The note points to a clear instance of long-liquidation pressure on Ethereum at a key price around $4,589.71. This often accompanies a shift from bullish leverage to risk-off behavior, which can pull ETH lower in the short term if selling accelerates or if bears test critical support levels.

From a liquidity and risk perspective, such liquidations can exacerbate downside moves, especially in a market with leverage. If price holds above nearby support and demand returns, a consolidation or bounce is possible; if not, ETH could retest recent lows or breach support with increasing volume. Monitoring on-chain activity, funding rates, and macro risk appetite will help gauge whether this was an isolated event or the start of a broader pullback.

Overall, this signal favors caution for long exposure in the immediate horizon. A data-driven approach would favor waiting for a clear price confirmation before committing new longs, or hedge existing positions to manage downside risk.

Recommendation

Recommendation: reduce exposure to leveraged ETH longs and consider hedging or a cautious stance until a clearer price signal emerges.

Trade ideas: (1) reduce long bets near current levels and wait for a reliable bounce with strong liquidity; (2) if bearish momentum persists, look for short entries near resistance with tight risk controls; (3) use stop-losses below key support to limit downside risk. Always align position size with your risk tolerance and avoid over-leveraging in volatile ETH moves.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.