Ethereum’s approach toward the $3,600 price threshold represents a critical liquidation danger zone, putting over $3.5 billion in leveraged long positions at risk of forced closure. Market fragility intensifies as this level could trigger cascade liquidations and heightened volatility.
Whales are strategically targeting the $3,600 area to exploit highly leveraged positions, exemplified by high-stakes bets like Aguila Trades’ 15x leveraged long opened at $3,650. This calculated pressure creates conditions for rapid price deterioration should support levels break.
The strain is already visible in recent liquidation events, with 7,160 ETH (valued over $26 million) liquidated amid market turbulence. Analysts caution this could initiate domino-effect selloffs extending beyond immediate positions.
LitixApp data reveals acute vulnerability with concentrated leveraged positions clustered just below $3,600. If Ethereum breaches this support zone, automated liquidations could ignite widespread forced exits and accelerate declines.
Despite the liquidation risks, institutional entities and whales have accumulated 43,591 ETH ($145 million) worth of Ethereum holdings during this period, indicating significant strategic positioning amidst the volatility.