Key takeaways:
An Ethereum trader incurred a loss of $36.4M in a single liquidation, totaling over $45M in losses.
Ethereum currently encounters significant long liquidation clusters between $2,370 and $2,500.
Technical indicators suggest a potential price drop of 10%–15% for Ether this month.
An Ethereum trader faced a staggering $36.4 million loss after the liquidation of a massive long position, coinciding with Ether (ETH) falling below the $4,000 threshold on Thursday.
Ethereum faces over $718 million in long liquidations
Wallet “0xa523” had staked 9,152 ETH anticipating a price increase, only to suffer one of the largest single-trader losses within the past day.
With just $500,000 remaining, wallet “0xa523” recorded total realized losses exceeding $45.32 million, deemed Ethereum’s “biggest loser” by Lookonchain.
This liquidation occurred amid a $331.66 million long squeeze that has adversely affected bullish traders over the preceding 24 hours, according to CoinGlass data.
In the current week, Ethereum traders have endured losses exceeding $718 million in long liquidations compared to $79.62 million in short liquidations, with Ether’s price experiencing a 10.56% decline during the same timeframe.
Related: How one trader turned $125K into $43M on Ether — and what you can learn from it
According to CoinGlass’s liquidation heatmap, a considerable leverage build-up exists between the price range of $2,370 and $2,500.
This indicates that if ETH continues to decline, numerous long positions may face liquidation in this price band, leading to intensified selling before the market stabilizes.
On the bullish side, a substantial cluster exists between $4,760 and $5,000. Short sellers could find themselves in a challenging position and may need to repurchase, which would drive prices higher if ETH recovers to those levels.
ETH price indicators suggest another 10-15% drop
A breakdown from a symmetrical triangle pattern has been confirmed on the daily chart for Ethereum, indicating a typically bearish reversal after a significant uptrend.
This shift suggests an immediate downward bias, with the next target positioned near the 0.382 Fibonacci retracement level at $3,595, marking a potential 10% drop from current levels in the short term.
This downside target aligns with a support zone between $3,600 and $3,400, as indicated by ETH’s Volume Profile (VPVR).
It further coincides with the 200-day exponential moving average (200-day EMA; highlighted by the blue wave) near $3,392, suggesting a potential price decrease of 15% in a worst-case scenario if the sell-off accelerates into October.
Could ETH prices rebound?
Renowned analyst Kamran Azghar identified approximately $3,600 as a “key demand” zone, suggesting that ETH may rebound to reach $4,900 or beyond.
Moreover, Ethereum’s weekly chart has shown the price retesting a crucial horizontal support zone around $3,800–$4,000, as highlighted by analyst Cold Blood Shiller.
This area had previously served as resistance during the 2022–2023 cycle. Successfully defending this level could bolster the argument for bullish continuation, transforming prior resistance into support.
A reversal toward the $4,760–$5,000 cluster, as suggested by various bullish analysts, remains a possibility if ETH bulls safeguard the $3,800–$4,000 levels in the upcoming days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
