Potential Liquidation of $212 Million in Leveraged Long Positions if Ether Drops Below $3,100

The cryptocurrency market experienced significant liquidations, totaling over $624 million within the past 24 hours, with the majority consisting of long positions.

In the event that Ether’s price falls below $3,100, there is a risk of liquidating leveraged long positions worth over $212 million. This comes as Ether saw a 9.3% decline to $3,254 over the past 24 hours, resulting in an 18% decrease on the weekly chart. According to Coinglass data, a drop to $3,100 would trigger substantial liquidations in long leverage positions.

Furthermore, breaching the psychological level of $3,000 could lead to liquidations totaling $237 million.

The recent market volatility has predominantly impacted long positions, with $514 million in long positions and $110 million in short positions being liquidated. Notably, OKX exchange witnessed the highest liquidations at $90.8 million, followed by Binance with $79.9 million and Bybit with $23.4 million, according to Coinglass data.

Bitcoin’s recent sharp pullback raises questions about institutional appetite, potentially prompting a period of price recalibration across the broader crypto market. Analysts at Bitfinex suggest that while Spot Bitcoin ETF inflows may drive market equilibrium, Ethereum and other Layer 1 blockchain projects show resilience, indicating a bullish narrative.

Meanwhile, Ethereum’s net outflows from exchanges reached a new record high, with 154,000 Ether moving off exchanges on March 11. This reduction in available supply on exchanges could potentially lead to upward price movement, according to Bitfinex analysts, signaling a potential short-term bullish trajectory for Ether.