Ethereum

August 27, 2025 at 22:03

Ethereum ether long liquidations at $4503.06

Ethereum long liquidations hit about $113K at $4503.06. I’m watching how this plays out for ETH and what it means for near-term risk and momentum.

Source available for registered users Sign Up Free

Analysis

Context matters. A large liquidated long position usually signals shorts are in control and that buyers were overwhelmed at that level. The price around $4500 suggests ETH encountered resistance near a key round-number level, which can attract further selling if holders see the move as a breakdown. This kind of liquidations can precede a pause or a retrace, especially if volume remains elevated after the drop.

From a risk perspective, the event points to heightened downside risk rather than a sustainable bullish breakout. Traders should consider whether recent momentum is fading and whether any macro factors or on-chain signals justify a continuation lower. If liquidity dries up, ETH could test nearby supports, potentially around the mid to high $4ks, before a broader directional decision is made.

In terms of evidence, the liquidation figure indicates aggressive risk-off behavior rather than broad-based accumulation. It’s important to corroborate with indicators like order-book pressure, open interest changes, and price action relative to moving averages to confirm a trend rather than a spike in noise.

Recommendation

Take a cautious stance for now. If you are already short or concerned about downside risk, manage risk with clear stop levels and defined exit points in case of a bounce. For new entries, prefer waiting for a more explicit signal of downside momentum or a reliable break below key support before adding short exposure.

Set price alerts around critical levels (roughly in the $4,000–$4,500 zone) to catch a potential continuation or reversal. Consider a staged approach: reduce exposure on rallies that fail to hold, and avoid over-leveraged bets until there’s clearer directional confirmation. Maintain discipline with risk controls and diversify risk across scenarios.

Overall, the data points toward a cautious to bearish stance in the near term, aligning with a short-position bias if the price confirms further weakness.

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.