Ethereum’s price at $4,280 is under scrutiny as analysts track the critical $4,200 support level, where over $2 billion in long positions could face liquidation risks, as reported by Cipher X. The concentration of leverage just below the current price points to potential forced selling if this level is breached, with liquidation exposure on exchanges like Binance, OKX, and Bybit. Maintaining above $4,000 is seen as crucial for the uptrend, with key support levels at $4,240 to $4,190 and resistance at $4,550–$4,571. Short interest in Ethereum has surged, hitting record highs in institutional short exposure through CME futures, while ETFs continue to accumulate. This dynamic creates tension between spot demand and futures positioning, potentially leading to a short squeeze if Ethereum sees an upward turn, causing rapid position closures and heightened price volatility. Market direction awaits key events this week, including the FOMC minutes, U.S. jobless claims, and remarks from Fed Chair Jerome Powell, with traders bracing for high volatility amid Ethereum’s precarious position near the liquidation zone and broader market uncertainties.
Ethereum Faces Pressure as $2B in Liquidations Loom Near $4.2K Support
