Ethereum Liquidations Trigger $805M Crypto Market Wipeout
Ethereum liquidations surged in the past 24 hours, escalating from an initial $76.5 million to a staggering $805 million wiped out across crypto futures.
The Ethereum liquidations spike alone forced $440 million of ETH futures closures, 89.9% of which were long positions. Bitcoin saw $280 million liquidated (96.3% longs), and Solana $85.6 million (92.9% longs).
This cascade of margin calls highlights the perils of high leverage during sharp price swings. Traders should cap leverage at 2–5×, set disciplined stop-loss orders, diversify holdings, and monitor funding rates and key support levels to mitigate forced selling and volatility-driven losses.
Bearish
Forced liquidations exert immediate selling pressure on ETH, driving prices lower. The spike from $76.5 million to $805 million in wiped-out positions underlines how quickly leveraged long bets can unravel, exacerbating market volatility. Short-term, this is bearish for Ethereum as further margin calls could prolong the sell-off. Over the long term, resetting overleveraged positions may create buying opportunities, but only after volatility subsides. Traders should remain cautious until clear support levels are established.