1. Short-term price pressure: Long liquidations mean a large amount of ETH is systematically sold, creating immediate downside momentum. Historically, similar situations often provide an additional 3%-8% room for further downside.

2. Leverage unwinding effect: After concentrated liquidation of leveraged positions, the risk exposure of the remaining capital that has not been liquidated decreases, helping the market restore stability. It looks like a bearish signal, but in the medium term it supports price stabilization.
3. Volatility amplification: Before derivatives leverage ratios fall to a relatively safe range, the market will continue to show high volatility and high uncertainty.