Does anyone understand?! Just when I was taking a sip of water while staring at the ETH K-line, a set of data made me steady my cup — according to the latest monitoring by Coinglass, as long as this thing falls below the 2900 mark, the long liquidation amount on mainstream exchanges will directly surge to $630 million (which is almost 5 billion RMB)! This is no small matter; it could lead to a wave of 'long liquidation' bloodbath. Friends who haven't understood the liquidation logic must finish reading this article today!
First, let's give beginners a basic understanding. Don't panic when you see 'liquidation.' Simply put, liquidation is the operation where the exchange directly helps you forcibly close your leveraged contract when it can no longer sustain itself. In this data, the 'liquidation intensity' focuses not on the specific number of contracts, but on the 'destructive power level' in different price ranges — the higher the liquidation bars on the chart, the more intense the market chain reaction will be when it reaches this price. It's like dominoes; once the first one falls, all the rest follow. This is the power of liquidity cascading.
Let me talk about my core judgment: Recently, ETH has been fluctuating around 3000, which basically means that both the bulls and bears are waiting for a big move. Why is the 2900 level so crucial? Because I've reviewed the holding data from the past week, and many retail investors and small to medium institutions have opened long leverage positions in the 2950-3000 range, hoping for a rebound. Once the price falls below 2900, this portion of positions will be triggered for mass clearing, and a large number of long positions being liquidated will further drive down the price, creating a vicious cycle. What's worse is that the overall trading volume in the current market is not high, and liquidity itself is relatively weak; during such times, the impact of a clearing wave will be at least doubled compared to usual.
Here's a practical suggestion: If you have long leverage positions, either quickly set your stop-loss just above 2900, or directly reduce your position to lower leverage; don't hold onto the luck of "it might rebound". Those who are in the spot market without leverage don't need to panic too much, but don't think about bottom-fishing either; waiting until this wave of clearing sentiment is released before looking again is not too late.
To be honest, the crypto market has always been a place of "risk and opportunity", but the premise is that you need to understand the risk signals. This wave of ETH's clearing alert is a typical "market traffic light"; following the signals is better than guessing randomly. Follow me @链上标哥 so you won't get lost!
