Crypto Liquidations Shift as ETH Tops $112M
Crypto liquidations initially reached $179 million in one hour, with long positions accounting for $172 million and ETH liquidations totalling $49.52 million, signalling strong downside pressure. In the later update, total crypto liquidations stood at about $166 million, but the structure changed sharply: short positions made up $146 million, while long liquidations fell to $20.4 million. ETH liquidations surged to $112 million after ETH broke above $2,600, indicating a major short squeeze. ETH rose 6.91% over 24 hours, while BTC gained 2.32% and traded above $79,000. The shift in crypto liquidations from long-led losses to short-led losses highlights rapidly changing market momentum and elevated leverage. Traders should monitor ETH’s ability to hold $2,600, alongside funding rates, open interest and liquidation clusters. A stabilisation in open interest and continued spot buying could support prices, but failed support may trigger renewed volatility.
Bullish
The latest liquidation data has a bullish immediate price signal for ETH and BTC because short traders suffered most of the losses as prices rose. ETH’s break above $2,600 and 6.91% daily gain suggest strong buying momentum, while BTC’s move above $79,000 adds broader market support. However, the earlier wave of long liquidations and the high level of leverage show that the market remains unstable. In the short term, a short squeeze can extend the rally, but forced buying may fade once liquidation demand is exhausted. ETH must hold $2,600 to confirm that the breakout is sustainable. Rising open interest without spot support, excessive funding rates or fresh liquidation clusters could increase the risk of a pullback. Over the longer term, stabilising leverage and sustained spot inflows would support a healthier bullish trend; otherwise, the move may prove to be a volatile derivatives-driven rebound.