Ethereum: ETH Long Liquidations at $4.18k Signal Caution

I’m observing a notable ETH liquidation event: Longs worth about $94K were wiped out at a price around $4,181.45. This spike in liquidations points to renewed bearish pressure and a potential shift in momentum as traders capitulate on long bets. With Ethereum trading near the $4.18k level, caution is warranted for bulls and momentum traders alike, as liquidations often precede further downside or choppy price action.

From a risk perspective, this liquidation underscores the risk of chasing long exposure in the current regime. If selling pressure intensifies, ETH could breach near-term supports, inviting further short-term downside or sideways consolidation, depending on counterparties’ risk appetite and macro drivers in the crypto markets.

Momentum signals should be weighed against on-chain dynamics, funding rates, and broader crypto liquidity. Maintaining disciplined risk management and clearly defined stop levels will be key as the market digests this liquidity event and tests the resilience of the $4,000–$4,200 zone.