$7.87B in ETH Shorts Face Liquidation at $3,800
Over $7.87B in ETH shorts could get liquidated if Ethereum hits $3,800 amid potential market correction.
- ETH shorts worth $7.87B risk liquidation at $3,800
- A 13% dip could trigger mass liquidation
- ETH may fall below $4K if BTC stays under $100K
A total of $7.87 billion in Ethereum ($ETH) short positions are on the brink of liquidation if ETH’s price drops to $3,800. This level has become a critical threshold in the current market environment. Traders who have bet against ETH could see their positions wiped out if the price continues to fall.
This potential liquidation would be one of the most significant in recent times, reflecting the high-risk appetite of leveraged traders. As the market hovers near key support levels, the threat of liquidation is causing anxiety across crypto trading platforms.
What Could Trigger the Crash?
A correction of just 13% from the current price levels could push ETH down to $3,800. Several factors could contribute to this, including a drop in Bitcoin ($BTC). Analysts suggest that if BTC fails to hold above $100,000, a cascading effect could drive ETH under the $4,000 mark.
This scenario would not only trigger massive ETH short liquidations but could also shake investor confidence across the altcoin market. Ethereum’s price movements have historically followed Bitcoin’s, making BTC’s strength crucial in determining ETH’s near-term fate.
Market Sentiment and Risk Outlook
Currently, market sentiment remains mixed. While some traders believe this is a healthy correction before a new rally, others fear a deeper downturn. The high level of leverage and open interest in shorts increases the likelihood of sharp moves in either direction.
If ETH holds above critical support zones, short traders may find themselves in trouble. But if the market breaks lower, the liquidation of $7.87 billion in ETH shorts could act as a temporary cushion, possibly leading to a short squeeze.
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