ETH faces $1.566 billion liquidation pressure: current price is in a critical zone of indecision between bulls and bears

According to the latest news, Ethereum is currently in a sensitive price range. Data from Coinglass shows that if ETH falls below $3,068, the cumulative long liquidation strength on major CEXs will reach $1.566 billion; if ETH breaks above $3,388, the cumulative short liquidation strength on major CEXs will reach $1.052 billion. Currently, ETH is priced at $3,228.67, exactly between these two key levels, forming a “long and short squeeze” situation.

Liquidation Pressure Map: Bulls Face Greater Threat

Asymmetric Liquidation Strength

From the data, the liquidation pressure on longs is significantly higher than on shorts. Downward liquidation strength ($1.566 billion) is about 49% higher than upward liquidation strength ($1.052 billion). This asymmetry reflects that long positions in the market are relatively larger and more leveraged.

Risk Difference Based on Price Distance

The current ETH price has only about $160 of space below the support at $3,068 (a roughly 5% drop), while there is also about $160 of resistance above at $3,388 (a roughly 5% rise). This means the risk of downward liquidation may be more easily triggered.

Complex Market Sentiment Signals

Contradictory Actions of Whales

Related information indicates a divergence in market participant behavior. On one hand, Bitmine staked 49,088 ETH again on January 4th, worth $152.7 million, with a total stake of 593,152 ETH, which is usually seen as a bullish signal. On the other hand, some traders’ short positions are showing unrealized losses exceeding $1.68 million, reflecting pressure on shorts amid the current upward movement.

Technical Weakness Signals

According to technical analysis, the 4-hour candlestick shows weakening upward momentum—trading volume is decreasing, MACD histogram is gradually shortening, and RSI above 70 may face a pullback. This suggests that although the price is rising, the momentum support is insufficient.

Market Implications of Key Price Levels

The current price is near the midpoint of this range, meaning that whether it breaks through or pulls back, large-scale liquidations could be triggered. This situation often leads to increased volatility.

Two Possible Short-term Trends

Based on current technical and funding conditions, ETH may face two directional tests. If it breaks above $3,388, short liquidations could provide further upward momentum; if it falls below $3,068, larger-scale long liquidations might trigger a chain reaction. Related analysis indicates current support at $2,928 and resistance at $3,167, which are also important technical levels to watch.

Summary

ETH’s current price position indeed presents a high-risk, high-opportunity scenario. The $1.566 billion long liquidation ceiling suggests that downside risk is more urgent, but it could also serve as short-term support at the bottom. The market shows both bullish signals from whales continuing to stake ETH and warnings of weakening technical momentum. For traders, it is crucial to closely monitor the levels at $3,068 and $3,388, as they are not only data-driven liquidation trigger points but also key support and resistance levels that will determine the subsequent trend.