Ethereum Price Surge Beyond $4,007 Could Trigger $1.95 Billion Short Liquidations on Major CEXs

Key Points

1. ETH price breakpoints at $4,007 and $3,630 serve as critical triggers for liquidation events on major centralized exchanges (CEXs).

2. Surpassing $4,007 causes a cumulative short liquidation intensity of $1.952 billion, while dropping below $3,630 results in $1.659 billion in long liquidations.

3. High leverage amplifies exposure, making traders vulnerable to margin calls when ETH crosses these thresholds, leading to cascading liquidations that exacerbate volatility.

4. Monitoring these price thresholds is crucial for traders to manage risks and avoid unexpected margin calls.

5. Large liquidation events occur when ETH price crosses key thresholds, causing forced closures of leveraged short or long positions.