- Ethereum nears $4,000 resistance after breaking past the $3,300 level, signaling strong bullish momentum.
- The heatmap shows heavy short liquidation zones between $3,900 and $4,100, increasing the chance of a short squeeze.
- Leverage on both long and short positions continues to rise, pointing to heightened volatility ahead for ETH.
Ethereum (ETH) has climbed steadily toward the $4,000 level, showing strong upward momentum in recent sessions. The price recently broke through a significant resistance zone around $3,200–$3,300, which had restricted previous upward moves. This breakout led to a series of bullish candles, supported by increasing trading volume and positive market sentiment.
As ETH trades close to $4,000, traders are closely watching for a breakout or reversal. This level has historically acted as both a technical and psychological barrier. A confirmed move above $4,000 could open the path toward higher resistance levels near $4,400 or even $4,500. However, if ETH fails to hold above this area, it may retest prior support levels closer to $3,300.
Liquidation Heatmap Highlights Market Tension
The ETH Aggregated Liquidation Levels Heatmap from Alphractal shows areas with high potential for market volatility. The chart tracks concentrations of long and short liquidation levels over the past month. Bright colors on the heatmap—mainly orange and yellow—mark zones with dense leveraged positions. These zones often see increased volatility when price enters them.
Currently, large short liquidation clusters appear between $3,900 and $4,100. A price move through this range could trigger forced liquidations, potentially driving ETH even higher in a short squeeze. On the downside, long liquidations build up below $3,600, with a significant concentration around $3,300. If ETH corrects lower, these levels may see rapid declines due to cascading long liquidations.
Leverage Builds Across Long and Short Positions
The bottom part of the heatmap monitors the accumulation of liquidation level. Statistics indicate that there is a gradual rise in long exposure as well as short exposure. The green line, which measures the long liquidations, kept on increasing signifying increasing leveraged purchases. Concurrently, liquidation levels become lower as well, which demonstrates a growth of bears on the market.
It (this elevated leverage) is an indication that there is elevated risk on both sides. As Ethereum inches closer to the 4,000 mark, market players anticipate bigger volatility. The result will likely be determined by how price has behaved in and around the concentrated liquidity areas, as displayed in the heatmap.
Disclaimer: The information in this press release is for informational purposes only and should not be considered financial, investment, or legal advice. Coin Crypto News does not guarantee the accuracy or reliability of the content. Readers should conduct their own research before making any decisions.
