Bitcoin and Ethereum Traders Face Liquidation Risks as Leverage Builds

  • Liquidation clusters highlight volatility, marking key tops and bottoms.
  • Ethereum retests $4,800, echoing Bitcoin’s 2020 breakout pattern.
  • ETH/BTC rallies from 0.017 support, eyeing resistance near 0.075.

Over the past three months, liquidation data has revealed widespread losses among leveraged traders. Alphractal’s liquidation heatmaps showed that BTC traders suffered equal losses on both long and short positions in the past 30 days. 

Analysts explained that liquidation clusters often aligned with local tops and bottoms, highlighting areas where market makers forced sharp moves. For Ethereum, a pool near $4,840 on August 22 triggered a rapid price spike before long positions re-accumulated, leading to a reversal. 

Data further showed a large concentration of BTC longs between $104,000 and $107,000, forming a key zone that could be targeted in future volatility. These observations underline the risk of excessive leverage, with liquidity pools acting as magnets for price movement.

Ethereum Mirrors Bitcoin’s 2020 Breakout

Top analyst Ash Crypto drew parallels between Ethereum’s current setup and Bitcoin’s late-2020 rally. Charts showed Bitcoin testing its 2017 all-time high of $20,000 three times before breaking higher toward $28,000 and beyond. 

Analysts now see Ethereum repeating this pattern, with three retests of its 2021 all-time high near $4,800. They argued that whales appear to be following the same accumulation strategy, suggesting that if history repeats, Ethereum could rapidly advance toward $10,000 in the current cycle. 

ETH/BTC Technical Levels and Outlook

The ETH/BTC weekly chart showed a strong rebound from 0.017, a zone highlighted as a major accumulation area after multiple retests. Following this recovery, the pair surged and confirmed 0.03212 as its new support, breaking through prior resistance levels. 

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Source: TradingView

At the time of analysis, ETH/BTC was trading around 0.049, recording a 7% gain in its latest move. Analysts identified the next resistance between 0.060 and 0.075, which coincides with historical supply zones and prior breakdown levels. 

On the downside, holding above 0.03212 is considered essential for preserving the bullish market structure. A breakdown below this level could show that ETH/BTC retested the demand zone between 0.021 and 0.017, an area that previously acted as strong support.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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