If Ethereum (
$ETH ) unexpectedly reverses and breaks the psychological milestone of 2,500 USD, the derivatives market will face a tsunami of liquidations for short sellers. Below are the specific figures based on the latest liquidity data:
1. The telling number: Over 1 Billion USD "evaporated"
According to data from CoinGlass's Liquidation Heatmap, the price range around 2,477 USD - 2,500 USD is where the densest concentration of short orders is located. It is estimated that if ETH surpasses this threshold, the total value of short orders liquidated on centralized exchanges (CEX) will exceed 1.02 billion USD. This is a massive amount of liquidity capable of causing strong volatility.
2. Short Squeeze Effect
The mechanism of the market is very cruel: When the price hits 2,500 USD, short orders are forced to buy back ETH to cut losses or be liquidated automatically by the exchange. This forced buying pressure will act like "gasoline on the fire", pushing the price of ETH even higher in an instant (potentially soaring to 2,600 - 2,700 USD) without the need for natural buying pressure from retail investors.
3. Current market sentiment
Currently, with ETH trading below this level (around 2,300 USD), bears are very confident. However, this confidence and the large accumulation of short orders make it a "tasty bait" for sharks (Market Makers). They often tend to push the price up to "sweep" liquidity at large liquidation concentration zones like 2,500 USD before determining the long-term trend.
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