Renowned cryptocurrency analyst, Ash Crypto, has issued a warning that Ethereum (ETH) 
$2,378 could face volatility and potential corrections due to the movements of whales and market makers. The analyst noted that the liquidation of short positions may trigger a wave of liquidations on long positions opened under the fear of missing out (FOMO). According to CoinMarketCap data, ETH was trading around $4,750 with a 2.72% increase in the last 24 hours, highlighting a cautious approach to the rising volume of leveraged transactions.
Strengthening Signals for Long Liquidations in Ethereum
Ash Crypto warned that following the liquidation of shorts, there could be pressure on long positions, with the use of leverage increasing the risk of losses during this period. The observed movements indicate that intensified liquidations could rapidly change the price trend. In this context, it becomes important to limit excessive positioning and maintain strict margin management.
The impact of liquidations on the microstructure of the market is also emphasized. Experts note that liquidity-dependent events can increase volatility and quickly change the price direction. According to Coinbase‘s analysis, strategies applied by exchanges could also influence price formation in the future. All evaluations in this direction signal that risk management and the reassessment of position sizes are necessary.
Current Price Data and Possible Scenarios
As per CoinMarketCap’s data, ETH was trading at $4,750 with a 2.73% increase over the last 24 hours, boasting a market cap of $573.39 billion. Its trading volume in the same period was $61.98 billion, with a one-month increase of 59.72%, and 83.22% over 90 days. While this indicates a strong upward momentum, it also supports cautionary signals regarding the vulnerability of leveraged positions.
Short-term thresholds are being assessed in the event of a potential pullback. Ash Crypto highlighted that maintaining above $4,200 is critical for the ongoing uptrend. Conversely, the risk of accelerated pullbacks remains live with the liquidation of long positions. The direction of the liquidation chain is shaped among whale movements, exchange practices, and investor psychology. Therefore, market participants should limit leverage to be prepared for sudden price changes.
