ETH falls into a liquidation trap: $487 million in liquidation strength on both the upper and lower sides awaits

According to the latest news, Ethereum(ETH) is currently in a delicate position. If ETH breaks above $3,227, the cumulative short liquidation strength on mainstream CEXs will reach $487 million; conversely, if it falls below $2,952, the cumulative long liquidation strength on mainstream CEXs will also reach $487 million. ETH’s current price is $3,084.62, exactly between these two key levels. This means that whether moving up or down, the market faces significant liquidation pressure.

The True Meaning of Liquidation Strength

Liquidation strength is not an exact amount of liquidations but a measure of the market impact that may occur when the price reaches a certain level. Higher “liquidation columns” indicate that when the price reaches that level, liquidity waves will generate a stronger market reaction. In other words, this $487 million liquidation strength means that once the price hits these key levels, it could trigger chain reactions, leading to larger-scale price fluctuations.

Symmetry Risk in the Current Situation

This symmetrical distribution of liquidation strength is no coincidence. It reflects that market participants have relatively balanced leverage positions in these two price zones. Both bulls and bears have laid out defenses at these critical levels.

Market Sentiment Amplifies Downside Risk

Although the liquidation strength is equal in both directions, market sentiment clearly leans bearish. According to the latest data, the funding rates on mainstream CEXs and DEXs show a generally bearish outlook, with Coinbase Bitcoin premium index remaining in negative premium for three consecutive days. These indicators suggest that, while upward liquidation pressure exists, the downside risk may be more easily triggered.

In the past 24 hours, the entire network experienced $406 million in liquidations, including $332 million long liquidations and $74.82 million short liquidations. This ratio indicates that longs are suffering greater pain, reflecting cautious market participation about the future trend.

What Traders Need to Watch

Real-time monitoring of key price levels

• $3,227 is the upward key point that could trigger large-scale short liquidations
• $2,952 is the downward key point that could trigger large-scale long liquidations
• The $275 range between these levels is the most sensitive zone in the current market

Changes in funding rates signals

The current 8-hour average funding rate for ETH is 0.0048%, which is neutral to slightly low. If the funding rate further declines or turns negative, it indicates strengthening bearish sentiment; otherwise, it may suggest a potential rebound.

Dynamic updates on liquidation strength

According to related data, Coinglass’s liquidation data is continuously updating. On January 9, data shows that if ETH breaks above $3,274, short liquidation strength reaches $1.382 billion; if it falls below $2,963, long liquidation strength reaches $1.115 billion. This indicates that the distribution of liquidation strength is constantly evolving, and traders need to keep an eye on these changes.

Summary

ETH is currently in a highly symmetrical but risky situation. There is $487 million worth of liquidation strength on both sides, but market sentiment is clearly bearish, making downside risks more easily triggered. Traders should closely monitor the key levels of $3,227 and $2,952, while also using multiple indicators such as funding rates and premium indices to comprehensively assess market direction. In this high-volatility environment, risk management is more important than predicting the direction.