ETH liquidation danger zone emerges: falling below $2971 will trigger $670 million long position liquidation

Based on on-chain data, ETH is currently between two key liquidation levels, with both risks and opportunities coexist. If the price falls below $2,971, the cumulative long liquidation strength on mainstream CEXs will reach $670 million; conversely, if it breaks through $3,270, the short liquidation strength will reach $424 million. Currently, ETH is trading around $3,119, sandwiched between these two liquidation levels, and market leverage risk warrants attention.

Liquidation Strength Data Interpretation

Current Risk Distribution

According to Coinglass data, the liquidation pressure faced by ETH is distributed as follows:

This data reflects an interesting phenomenon: the liquidation strength for longs below is significantly greater than that for shorts above, indicating that long leverage positions are more crowded in the current market. If the price breaks below $2,971, it will trigger a sizable chain of liquidations.

Market Background Supplement

From related news, recent market dynamics for ETH are multifaceted: on one hand, the US Ethereum spot ETF experienced a net outflow of $159.2 million on January 9, with Grayscale’s ETHE outflow of $31.7 million, reflecting cautious sentiment among institutional investors. On the other hand, a long-term whale holding 101,000 ETH transferred over 40,000 ETH to Bitstamp on January 10, which may indicate long-term holders selling at high levels.

Looking at price trends, ETH has risen 1% in 24 hours but remains down 0.28% over 7 days, showing weak short-term rebound momentum. Technically, ETH is repeatedly testing between the 100-day and 50-day moving averages, with upward momentum clearly weakening.

Risks to Watch

• Long liquidation strength far exceeds short, with more risk below
• Leverage traders densely clustered around $2,971
• Institutional outflow signals (ETF net outflow)
• Whale selling actions may exert downward pressure on the market

Summary

ETH is currently in a relatively fragile position, with the downward liquidation strength being 1.58 times the upward, indicating that the price is more prone to break downward. If it falls below the $2,971 key support, it will trigger $670 million in long liquidations, potentially accelerating the decline. Conversely, resistance above at $3,270 is weaker, making a breakout more difficult. For traders, this presents an asymmetric risk-reward scenario, and close monitoring of the protection of the $2,971 key support level is essential.