Recently, Ethereum's price fluctuations have been capturing the attention of many. According to liquidation data, if Ethereum drops below $2900, the long liquidation scale could reach $7.84 billion. Conversely, once it breaks above $3100, the short liquidation intensity could surge to $9.23 billion. These two price levels are not arbitrary; the underlying data is quite solid.

I checked on-chain information and found that currently, the inflow of funds into Ethereum on exchanges is continuously increasing. Especially large transfers, which are happening more frequently than before, typically indicate that big players are quietly positioning themselves. Leverage levels are quite high, and funding rates are also in a heated state. This combination often signals an imminent period of market volatility.

From the liquidation distribution chart, $2900 and $3100 act like two "trigger points." Once the price reaches these liquidity-dense zones, chain reactions are likely to be triggered. If support holds at $2900, a rebound to test $3100 is possible; but if it breaks, the downward speed could be quite fierce. Conversely, if the price successfully breaks above $3100, short positions could be squeezed out, and upward momentum might become even stronger.

Why am I so confident? Because in these high-liquidity zones, market sentiment amplification effects are very evident. In multiple past cycles, whenever the price approached key levels, algorithmic trading and human emotions would reinforce each other, amplifying volatility — a pattern that has been repeatedly validated.

Pay close attention to the performance of these two key levels of Ethereum, as it will help in understanding the short-term trend.