Ethereum and Bitcoin Price Levels Poised to Trigger Major CEX Liquidations
Coinglass data indicates Ethereum’s move above $3,000 or below $2,850 could cause hundreds of millions in liquidations, underscoring volatility risks on centralized exchanges.
BTC
ETH
Summary
On November 26, Coinglass data showed that Ethereum’s price move above $3,000 could trigger $794 million in short liquidations on major centralized exchanges, while a drop below $2,850 could cause $426 million in long liquidations. This update follows earlier data highlighting Bitcoin’s potential $649 million short liquidation risk above $89,000 and $394 million long liquidation risk below $86,000. These figures emphasize the substantial volatility and liquidation risks tied to sharp price swings in top cryptocurrencies.
Terms & Concepts
- Long liquidation: Forced closure of long positions when the asset price drops to or below a certain threshold, causing losses.
- Short liquidation: Forced closure of short positions when the asset price rises past a certain level, leading to losses.
- CEX (centralized exchange): A cryptocurrency trading platform operated by a centralized company or authority.