Up to $2 billion in long positions face liquidation amid this . These positions would get liquidated if ETH drops to $4,200. Meanwhile, the ongoing wave of sell-offs puts the largest altcoin by market cap at risk of dropping to this level. 

$2 Billion In Liquidations On The Horizon Amid Ethereum Price Crash

shows that $2 billion in ETH long positions are at risk of being wiped out on exchanges if the Ethereum price drops to $4,200. The shows that there is a massive cluster waiting to be triggered. Therefore, further declines to the downside could trigger a wave of forced selling even as traders rush to close their positions. 

However, a positive for is the fact that more traders are currently short than long. As such, market makers could hunt for liquidity at higher levels up to $4,500, where $2.8 billion in short positions could be wiped out if ETH reaches there. 

Market commentator how the net ETH shorts are at new highs on the CME. Based on this, he remarked that these short traders are “generously providing liquidity into the .” Notably, these shorts were at new highs back when ETH broke above $4,000 earlier this month. 

Meanwhile, ETH continues to see massive demand from the . The largest ETH treasury company, that over the past week, it increased its ETH holdings by $1.7 billion to $6.6 billion. In the process, it added over 373,000 coins, increasing the total from 1.15 million to 1.52 million coins. Such purchases put massive buying pressure on ETH, which is bullish for the Ethereum price. 

Sell Pressure From ETFs And Whales

It is worth noting that the Ethereum price is currently facing selling pressure from and some whales, which can be bearish for the altcoin in the near term. shows that these funds recorded a net outflow of $196.62 million on August 18. BlackRock’s ETHA, the largest ETH ETF, saw a net outflow of $87.16 million. 

This marked the second consecutive daily net outflows for . These funds had recorded an outflow of $59.34 million on August 15. Meanwhile, on-chain analytics platform that whales like Longling Capital are offloading ETH. Longling Capital sold 5,000 ETH today, locking in profits. A whale that has been dormant for a year has also begun selling and has sold 3,075 ETH so far. 

At the time of writing, the Ethereum price is trading at around $4,230, down in the last 24 hours, according to from CoinMarketCap.