Crypto traders need to be cautious as Ether (ETH) prices drop below $4,200, which could trigger significant long liquidations leading to heightened market volatility. Currently, over 56,638 ETH in long positions, valued at approximately $236 million, are at risk of liquidation if prices fall to $4,170. The situation reflects a precarious balance in the market, with notable liquidation risks also identified at lower price points of $2,150-$2,160 and $3,940. As of the latest update, Ether is trading at $4,260, showing a decline of nearly 5%. Industry experts warn that substantial long liquidations could potentially diminish Ether prices to around $3,600. When traders' positions no longer meet margin requirements due to adverse market movements, forced closures, or liquidations can occur, which significantly adds to selling pressure and intensifies price downturns in a cascading manner, further amplifying market volatility. This pattern underscores the importance for traders to stay alert to potential market swings, particularly in volatile conditions.

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