Talks for a new ATH for Ethereum (ETH) have begun, and while we're only one step ahead, data from the US has confusing the bullish picture.
Ethereum, which rose to $4,780, fell to $4,280 in an unexpected sharp decline.
The decline has wiped out long, long positions of billions of dollars, but analysts believe ETH's dangers are not over yet.
At this point, Andrew Kang, founder of Mechanism Capital, predicted that long-position liquidation could reach up to $5 billion if Ethereum prices continued to fall.
Shared from his X account, Kang said that Ethereum's long liquidation could reach $5 billion in the future.
Kang warned that if this occurs, the ETH price could drop to $3,200 or $3,600.
“We estimate that the exchange's ETH liquidation will reach $5 billion.
This will reduce the estimate from $3.2,000 to $3.666 million. ”
With the general sluggishness of Ethereum and the cryptocurrency market, analysts point to $4,000 as a key level of support for ETH. If Ethereum exceeds this level, stability may return. However, if this critical support level is broken, ETH and the market could face one of the biggest liquidation waves of the year.
*This is not investment advice.
