Ethereum News Price Update

Ether Faces Potential Volatility as $236 Million in Long Liquidations Loom Below $4.2K

by Crypto Hobby

Updated September 05, 2025

Glowing digital coin above turbulent background with red energy.

The Ether market is bracing for potential turbulence as a significant amount of leveraged long positions, valued at approximately $236 million, are at risk of liquidation if the price of ETH dips below the $4,200 mark. This scenario could trigger a cascade of selling, amplifying market volatility and potentially driving prices lower.

Key Takeaways

Over $236 million in Ether long positions are vulnerable to liquidation if the price falls below $4,200.
A drop to $4,170 could trigger liquidations for more than 56,638 ETH on the Hyperliquid exchange.
Experts suggest that large-scale liquidations could push Ether prices down to the $3,200-$3,600 range.

Understanding Liquidations

Liquidations occur when a trader's leveraged position cannot meet the margin requirements set by an exchange. This typically happens when the market moves unfavorably against the trader's bet, causing their account equity to drop below the minimum maintenance margin. The exchange then automatically closes the position to prevent further losses and ensure the recovery of borrowed funds.

Potential Market Impact

When a substantial number of long liquidations occur, it can lead to a sudden surge in selling pressure. This increased selling can drive prices down further, creating a negative feedback loop that triggers additional liquidations. This cascading effect is known to significantly amplify market volatility.

Data from Hyperdash indicates that on the decentralized perpetual exchange Hyperliquid, over 56,638 ETH, representing $236 million in bullish long positions, are at risk if Ether's price falls to $4,170. The data also highlights potential liquidation risks at price points of $2,150-$2,160 and $3,940.

Andrew Kang, founder of Mechanism Capital, expressed concerns on X, estimating that around $5 billion in ETH liquidations could occur across exchanges, potentially driving the price down to between $3,200 and $3,600. At the time of reporting, Ether was trading around $4,260, marking a nearly 5% decrease on the day.