Ethereum approaches $4,400, which could trigger a $928 million short positions liquidation wave!

Ethereum (ETH) is approaching a critical price level that could trigger significant market fluctuations. According to Coinglass data, if ETH breaks through $4,400, the total amount of short positions liquidated across major centralized exchanges (CEX) could reach up to $928 million. This means that once large-scale automatic closing of positions is triggered, prices may be sharply pushed up in a short period of time.

$4,400: The "Death Line" for short positions

(Source: Coinglass)

Liquidation scale: Breakthrough 4,400 USD → Total short positions liquidation amount approximately 928 million USD

Market Impact: A large number of leveraged short positions are forced to close, creating buying pressure that may drive ETH up rapidly.

Technical Background: The clearing cluster shows that this price level is a highly sensitive area for algorithmic trading and automated clearing mechanisms.

In the cryptocurrency market where leveraged trading is prevalent, this "chain reaction" often amplifies price fluctuations and can even trigger short-term FOMO (fear of missing out) market conditions.

4,200 USD: The "Defensive Line" for Bulls

Liquidation Scale: Break below $4,200 → Total Long Position Liquidation Amount approximately $705 million

Market Impact: Leveraged long positions are forced to close, selling pressure increases sharply, which may trigger a downward spiral.

Potential support: If it loses 4,200 USD, the price may test lower support areas.

This means that $4,200 is the key defense line that bulls must hold. Once it is lost, market sentiment may quickly turn pessimistic.

Clearing Cluster and Market Psychology

Coinglass's liquidation data is based on the relative strength of the liquidation clusters, rather than simply the number of contracts.

The higher the liquidation threshold → the greater the likelihood of a significant price reaction at that price level.

Leverage and Institutional Influence → High-leverage positions and algorithmic trading may amplify fluctuations瞬間.

For professional traders, these price levels are not only technical thresholds but also dual triggers of psychology and mechanics.

How should traders respond?

Key price levels to watch: $4,400 (short positions liquidation trigger) and $4,200 (long positions liquidation trigger)

Control Leverage: Reduce leverage multiple in high fluctuation intervals to avoid passive liquidation.

Set Stop Loss: Set a stop loss level in advance to prevent significant losses from sudden market fluctuations.

Observe trading volume: a breakout or breakdown at key price levels with increased volume is the key signal for trend continuation.

Conclusion

Ethereum is approaching the "bull-bear watershed" at 4,400 USD. Once it breaks through, it could trigger a short position liquidation wave of 928 million USD, driving the price up rapidly; conversely, if it falls below 4,200 USD, it may trigger a long position liquidation of 705 million USD, accelerating the decline. For traders, this is a critical point of leverage and psychological contest, and the next 200 USD range may determine the short-term fate of ETH.