“ETH

Risk alert

Ethereum liquidations accounted for 60% of the entire crypto market

ETH leverage is far more sensitive than BTC

Guys

That wick this morning

Wiped out ETH longs in one go

According to the latest Coinglass data

During this 24-hour crypto market liquidation wave

$977 million was liquidated across the market

$896 million came from long positions

Ethereum alone saw $293 million in liquidations

60% of the entire market total

Although BTC has a larger market cap

ETH was the main source of liquidations

184,000 traders got wiped out

Binance alone saw $516 million liquidated

Leveraged funds were piled into Ethereum

ETH holders really got battered this round

ETH’s open interest in nominal terms is clearly lower than Bitcoin’s

but the amount of liquidations is actually higher

What does that tell us?

It means the guys trading ETH generally use higher leverage

Even a small price move triggers liquidations

Why is ETH more prone to liquidations?

Mainly because ETH is inherently more volatile than Bitcoin

At the same leverage

ETH is more likely to hit its liquidation price

Another reason is

A lot of altcoin and DeFi capital is closely tied to ETH

Many people use ETH as collateral to open futures positions

So, yeah

Why has ETH fallen twice as much as Bitcoin?

It’s precisely because of mass liquidations

Once short positions are forcibly closed

they create forced selling that pushes prices down

triggering a cascade

And ETH is the main liquidity pool for altcoins

If leveraged ETH positions get liquidated

the impact will quickly spread across the entire altcoin sector

Compared with Ethereum

Bitcoin is more stable

and more capital is flowing into spot ETFs

There’s more futures trading on the Ethereum side

So

bigger swings happen more frequently

ETH hasn’t bottomed out yet

I’ll be waiting for you guys at 2158.” This passage describes a sharp deleveraging event in the ETH futures market and expresses the author’s concerns about short-term risks for ETH.

Put simply: when ETH suddenly plunged in the morning, many traders who were long ETH using high leverage didn’t have enough margin to maintain their positions. The trading platform automatically closed them out—this is called “liquidation” or “forced liquidation.” Liquidations typically generate additional market sell orders. The more sell orders there are, the further prices may fall, potentially triggering liquidations of even more long positions and creating a cascading “stampede.”

The passage aims to emphasize four main points:

The amount of ETH liquidations may be significantly higher than that of BTC.

Even though BTC has a larger market cap and may also have a higher open interest, ETH has seen a greater dollar amount of liquidations. The author interprets this to mean that ETH futures traders are using more aggressive leverage or that their positions are more concentrated in the same direction.

ETH is more sensitive to leverage.

If ETH’s short-term price swings are larger than BTC’s, then at the same leverage, ETH is more likely to approach its liquidation price. In other words, with the same amount of leverage, an ETH position may face greater liquidation risk.

ETH’s impact can spread to altcoins and DeFi.

ETH is often used in the DeFi ecosystem as collateral, a liquid asset, or trading margin. When ETH fluctuates sharply, the value of collateral may fall, and on-chain liquidations and futures position closures may increase, amplifying volatility in some altcoin markets.

“It hasn’t bottomed out yet; I’ll wait at 2158” is the author’s personal opinion.

This means the author thinks ETH may still face further downside or a pullback and is watching the price area around 2158. It is not a definitive conclusion about the market. Liquidation data can indicate crowded leverage and short-term risk, but on its own it cannot prove that the price will fall to a particular level or that it has already bottomed.

Also, the original statement “once short positions are liquidated, forced selling pushes prices down” is inaccurate:

When long positions are liquidated, it typically triggers forced selling, which may exacerbate a decline;

When short positions are liquidated, they typically have to be closed with forced buying, which may instead push prices higher.

Overall, this is an emotionally charged warning about risk. It cautions traders that, in a high-leverage and fast-moving market, ETH may be more prone than BTC to cascading liquidations. Anyone using leverage should pay particular attention to their margin, concentration of positions, and the risk of extreme volatility.