If Ethereum falls below $2,900, the total liquidation intensity of long positions on major centralized exchanges will reach $395 million.
TL;DR
If Ethereum drops below $2,900, long positions on major exchanges could face $395 million in liquidations, while a rise above $3,000 might trigger $497 million in short liquidations. Liquidation charts show the relative impact of price levels, with higher bars indicating stronger market reactions.
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According to ChainCatcher, Coinglass data suggests that if Ethereum falls below $2,900, the total liquidation intensity of long positions on major centralized exchanges (CEXs) will reach 395 million. Conversely, if Ethereum breaks through $3,000, the total liquidation intensity of short positions on major CEXs will reach 497 million.
A liquidation chart does not show the exact number of contracts pending liquidation, or the exact value of contracts being liquidated. Instead, the bars on the chart represent the importance, or strength, of each liquidation cluster relative to its neighboring clusters. Therefore, a liquidation chart shows the extent to which a price level will be affected. Higher "liquidation bars" indicate that the price will react more strongly to liquidity spikes once that level is reached.