Ethereum Liquidation Warnings: Coinglass Flags $1.04B Long Wipeout Zone

The Ethereum market is once again under scrutiny from Coinglass' liquidation heatmap data, which suggests that the cryptocurrency is sitting between two significant liquidation walls.

These walls are formed by stacked leverage positions just below and above the current spot price, with a potential wipeout zone identified at $2,323. According to Coinglass, if Ethereum prices were to drop below this level, cumulative long liquidation intensity on centralized exchanges could reach around $1.044 billion.

This latest finding is not an isolated incident, but rather the latest in a series of warnings issued by Coinglass regarding the dangers of leverage stacking near key price bands. Earlier this month, the platform highlighted a potential 'trapdoor' cascade risk zone at $2,040 and $2,253, with nearly $1.8 billion of combined leverage packed between roughly $1,952 and $2,154.

Coinglass' Ethereum dashboard currently shows around $32.8 billion in open interest, with approximately $111.6 million of Ethereum futures positions having been liquidated over the past 24 hours.