Reading the Market's Pressure Points: Understanding ETH's Liquidation Zones Through Relative Intensity Charts

metaverse_hermit · 2026-01-19T08:36:08+00:00

Coinglass highlights critical Ethereum liquidation thresholds at $2,800 and $3,100, indicating significant risk zones for traders. A drop below $2,800 could trigger $796 million in long liquidations, while a rise above $3,100 may lead to $889 million in short liquidations, influencing market dynamics substantially.

metaverse_hermit

2026-01-19 08:36:08

Abstract generation in progress

On-chain analytics platform Coinglass reveals critical liquidation thresholds for Ethereum that traders should monitor closely. The relative intensity chart mapping shows that two price levels present significant market friction zones.

The Downside Liquidation Scenario

Should Ethereum dip below the $2,800 mark, accumulated long positions across major centralized exchanges face potential cascade liquidations totaling approximately $796 million. This concentration of leveraged longs creates a liquidity cluster that amplifies selling pressure once triggered—essentially a price floor where significant forced exits converge.

The Upside Liquidation Pressure

Conversely, breaking above $3,100 would activate substantial short liquidations reaching $889 million in cumulative value across CEX platforms. This represents the opposing force: traders who bet against Ethereum’s upside face margin calls, potentially creating upward momentum as their positions unwind.

What the Liquidation Intensity Chart Actually Reveals

The liquidation relative intensity chart differs from simple contract counts—it measures the concentration strength of each liquidation cluster relative to surrounding levels. Think of it as a heat map of market vulnerability. Higher intensity bars signal price points where liquidity distortions are most pronounced. When price reaches these zones, the convergence of forced liquidations creates disproportionate market movement compared to normal trading volume.

With Ethereum currently trading around $3.22K, the $2,800 and $3,100 levels represent asymmetrical risk zones—one containing trapped long positions, the other hiding short-squeeze potential. Understanding these relative intensity patterns helps traders anticipate where algorithmic liquidation cascades may amplify price swings beyond fundamental value movements.

ETH-3,12%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.