Ethereum Liquidity Cascade: $630 Million Long Liquidations Expected Below $2,900 and $918 Million Short Liquidations Above $3,100

COINOTAG, citing Coinglass data on December 23, highlights a pronounced liquidation risk signal for Ethereum. If the asset slips below $2,900, the estimated total long liquidation strength across major CEXs could reach about $630 million. Conversely, a breakout above $3,100 may unleash roughly $918 million in short liquidations, signaling meaningful market stress.

COINOTAG clarifies that the liquidation chart reflects the relative importance of each cluster rather than exact contract counts. The bars indicate potential liquidity cascades—the higher the bar, the more pronounced the price‑driven liquidation response as levels are breached.

For traders, these thresholds underscore the importance of risk management around key Ethereum price levels and CEX liquidity dynamics. Monitoring the $2,900 and $3,100 zones can aid hedging decisions and exposure sizing amid evolving market risk.