Ether wey fall under $4.2K fit cause $236M liquidation
Crypto traders dem suppose dey watch ether price wen e fall below $4,200, because if e break dis level, e fit trigger big big ETH long liquidations. Data from Hyperdash show say over 56,638 ETH (around $236 million) for long bets on Hyperliquid dey at risk if ether price drop to $4,170. More liquidation zones dey near $3,940 and $2,150. For now, ETH dey trade near $4,260, down almost 5% for 24 hours. According to Andrew Kang of Mechanism Capital, cascading liquidations fit drive ether price down to $3,600 or even $3,200. Forced liquidations happen when margin call close leveraged positions, e dey increase sell pressure and volatility. Traders suppose dey monitor liquidation clusters and adjust their risk management strategies as market fit get short-term wahala.
Bearish
Di article dey yarn about how forced ETH liquidation fit cause chain reaction wen dem drop under $4,200, wey historically dey speed up price drop. Big liquidation dem dey usually trigger negative feedback loop, like how e happen during May 2021 and March 2020 crypto crash. For short term, if key support level like $4,170 and $3,940 break, e fit increase selling pressure and push ether price go $3,600 or even lower, confirm say market dey bearish. But for long term, strong capital wey come in for discount price fit give better buying chance around $3,200–$3,600 range, fit stabilize market once selling pressure reduce. Traders suppose prepare for short term wahala and dey watch these critical support areas for signs of market reversal.