$700M Long Positions Will Bite Dust if Ethereum Price Drops 8%, Will it?

Akash Girimath
Updated
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Will Ethereum Price Liquidate $973M Longs Before $2,000 Retest?

Highlights

  • More than $700 million worth of long positions will be wiped out if Ethereum price drops nearly 8%.
  • ETH liquidation levels include $2,154, $2,107, and $2,049, which could trigger massive long liquidations.
  • A potential crash after the Crypto Summit on March 7 could be followed by a strong spike in spot buying, catalyzing a swift move to the upside.

Ethereum’s (ETH) performance remains lackluster as it trades around $2,200 today after gaining 1.04% on Tuesday. Today, ETH price is up nearly 2% in an attempt to recoup the losses due to the 15% crash noted on March 3. Due to the drastic plummets and rallies and the upcoming Crypto Summit on March 7, traders are more eager than ever and anticipate a rally. As a result, CoinGlass data shows more than $700 million worth of long positions will be wiped if Ethereum price drops nearly 8%. Let’s explore if ETH will drop lower and hunt the eager bulls or continue to ascend higher.

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Key Ethereum Price Liquidation Levels to Watch Ahead of Crypto Summit on March 7

Crypto volatility has skyrocketed lately as the sector remains sensitive to macroeconomic events like Trump’s tariff announcement or the Fed’s take on inflation. Trump’s crypto policy promises and the upcoming Crypto Summit on March 7 have also added to this heightened volatility.

A closer look at CoinGlass’ Liquidation Map shows that $298 million worth of long positions will be liquidated below $2,154, just 2.60% lower than the current price of ETH.

$582 million and $705 million long positions will all be forced to close if Ethereum price drops below $2,107 and $2,049, respectively.

$700M Long Positons Will Bite Dust if Ethereum Price Drops 8%, Will it?
Key ETH liquidation Levels

All in all, an 8% drop in Ethereum will catalyze long liquidations worth more than $700 million.

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Will ETH Continue its Price Crash?

A 2% to 8% drop is easy to achieve in the cryptocurrency space with heightened volatility. Therefore, if the Ethereum price drops 8%, it would be a good place to accumulate ETH at a discount, as the majority of short positions will be hunting for liquidity. i.e., when short positions are covered, they buy the underlying contract, in this case, Ethereum.

If the liquidation event is followed by a strong spike in spot buying, it could catalyze a swift move to the upside.

From a long-term perspective, the daily chart shows Ethereum price has already swept $2,100 on March 4. This move caused a massive decline in Open Interest, likely suggesting the forced closing of long positions. Typically, such liquidation events serve as a good reversal signal. February 3, September 6, 2024 and August 5, 2024 are some examples.

$700M Long Positons Will Bite Dust if Ethereum Price Drops 8%, Will it?
Ethereum 1-day Price Forecast

If history repeats, investors can expect ETH price to catalyze a similar liquidation event around the Crypto Summit on March 7.

Key Levels to Watch

The ideal Ethereum price scenario for kickstarting a bullish reversal would be a sustained rally in the March 7 Crypto Summit followed by a crash that leads to a bottom formation.

In such a case, Ethereum price will need to retest the $2,600 and $2,700 resistance levels and form a top on March 7. A reversal or profit-taking after the highly anticipated event pushes ETH price to slide below the aforementioned key liquidation levels and into a strong demand zone, extending from $1,600 to $1,700. This move would also push the Relative Strength Index (RSI) into an oversold condition, further highlighting the buying opportunity.

Ethereum price prediction notes that the upside targets for buyers that accumulate ETH between $1,600 and $1,700 are the liquidity zones extending from $4,000 to $4,100.

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Frequently Asked Questions (FAQs)

1. What will happen to Ethereum long positions if the price drops 8%?

More than $700 million worth of long positions will be wiped out if Ethereum price drops nearly 8%.

2. What are the key Ethereum price liquidation levels to watch?

Key liquidation levels include $2,154, $2,107, and $2,049, which could trigger long liquidations worth millions.

3. Will Ethereum price continue its crash after the Crypto Summit?

A potential crash after the summit could be followed by a strong spike in spot buying, catalyzing a swift move to the upside.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Senior Cryptocurrency Analyst & Market Strategist Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts. A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise. Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.