en.bitcoinsistemi.com
While talks of a new ATH for Ethereum ($ETH) have begun and are only one step away, data from the US has upset the bullish picture.
Ethereum, which rose to $4,780, fell to $4,280 with an unexpected sharp decline.
While this decline wiped out billions of dollars worth of long positions, analysts believe the danger in $ETH is not over yet.
At this point, Mechanism Capital founder Andrew Kang predicted that long position liquidations could reach up to $5 billion if the Ethereum price continues to fall.
Sharing from his X account, Kang stated that long liquidations in Ethereum could reach up to $5 billion in the coming period.
Kang warned that if this happens, the $ETH price could drop to $3,200 or $3,600.
“We estimate that $ETH liquidations on exchanges will reach $5 billion.
This lowers our estimate to $3.2k-$3.6k.”
As Ethereum and the cryptocurrency market in general experience a downturn, analysts are pointing to $4,000 as a critical support level for $ETH. If Ethereum holds above this level, stability could return. However, if this critical support level is broken, $ETH and the market could face one of the largest liquidation waves of the year.
*This is not investment advice.