Key takeaways:
An ETH trader incurred a loss of $36.4M in a single liquidation, totaling over $45M in losses.
Ethereum faces significant long liquidation clusters between $2,370 and $2,500.
Technical indicators suggest Ether’s price may drop another 10–15% this month.
An Ethereum trader lost $36.4 million following the liquidation of a substantial long position, as Ether (ETH) fell below $4,000 on Thursday.
Ether faces over $718 million in long liquidations
Wallet “0xa523” had invested 9,152 ETH anticipating a price increase, but suffered one of the largest single-trader losses within the last 24 hours.
Wallet “0xa523” now holds only $500,000, with total realized losses surpassing $45.32 million, prompting Lookonchain to label it Ethereum’s “biggest loser.”
This liquidation occurred amidst a $331.66 million long squeeze impacting bullish traders over the past 24 hours, according to CoinGlass data.
In this week alone, Ethereum traders faced over $718 million in long liquidations compared to $79.62 million in short liquidations. Ether’s value has decreased by 10.56% in this timeframe.
Related: How one trader turned $125K into $43M on Ether — and what you can learn from it
CoinGlass’s liquidation heatmap indicates a large build-up of leverage between $2,370 and $2,500.
If ETH continues to decline, many long positions are poised for liquidation in that range, potentially intensifying selling pressure before the market stabilizes.
Conversely, a significant cluster lies between $4,760 and $5,000. Short sellers could face losses and be forced to buy back, thus elevating prices if ETH rebounds to these levels.
ETH price technicals indicate another potential 10-15% decline
Ethereum has confirmed a breakdown from a symmetrical triangle formation on the daily chart, generally signaling a bearish reversal if following a strong uptrend.
This shift alters immediate sentiment to a bearish outlook, with the next target around the 0.382 Fibonacci retracement level at $3,595, reflecting approximately a 10% decline from present levels short-term.
The downside target aligns with the support zone—the $3,600–$3,400 area—indicated by ETH’s Volume Profile (VPVR).
It coincides with ETH’s 200-day exponential moving average (200-day EMA; the blue wave) around $3,392, suggesting a potential price decline of 15% in a worst-case scenario if the sell pressure escalates into October.
Is there hope for ETH’s recovery?
Additionally, Ethereum’s weekly chart indicates a retest of a significant horizontal support zone around $3,800–$4,000, as pointed out by analyst Cold Blood Shiller.
This region previously acted as resistance during the 2022–2023 cycle. A successful defense of this level would bolster the case for bullish continuation, transforming prior resistance into support.
A rebound towards the $4,760–$5,000 zone, indicated by several bullish analysts previously, remains feasible if ETH bulls maintain the $3,800–$4,000 levels in the forthcoming 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.
