Ethereum seems to be nearing a crucial turning point, with around $9.5 billion in short positions on the line. A 20% price surge could trigger significant liquidations, making a rally the most challenging scenario for traders who are betting against it. At the same time, data showed that even the hackers who sold off in a panic during last week’s crash have been buying back ETH at higher prices.
As Ethereum and Solana compete for dominance in DEX volumes, the market sentiment appears to be leaning towards a careful yet hopeful perspective. Ethereum’s Exchange Liquidation Map highlighted an uneven scenario: around $9.5 billion in short positions could be wiped out if ETH sees a 20% surge from its current levels, while merely $2.6 billion in long positions face liquidation risk with a similar decline. Data indicated that concentrated short liquidations were accumulating in the $4,100-$4,200 range, suggesting that any upward movement could trigger a series of cascading buy orders.
The impact of cumulative short leverage was greatly diminished by the presence of long positions. The path of “maximum pain” – along with potential fluctuations – appears to trend upward. During the liquidation-induced downturn, hackers disposed of 8,638 ETH, totaling an impressive $32.5 million, at a rate of $3,764. A loss of $5.5 million was incurred during the turmoil. As prices surged, those same wallets acquired 7,816 ETH for $32.5 million at a price point of $4,159. They tactically bought back at high prices, showcasing how abrupt market changes punished those who acted on impulse.
In recent updates, Solana and Ethereum have maintained their stronghold in Q3 DEX Volumes, reinforcing their status as the top networks for trading activity. The change highlights a strong DeFi market. In the face of extraordinary liquidations, the focus on liquidity and tactical purchasing across leading chains significantly contributed to Ethereum’s path to recovery.