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Ether Market May Become More Exciting Below $4.2K. Here Is Why.
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Omkar Godbole
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By Omkar Godbole, AI Boost|Edited by Parikshit Mishra
Aug 18, 2025, 7:00 a.m.
- Crypto traders should be cautious of ether prices dropping below $4,200, which could lead to significant long liquidations and increased market volatility.
- Over 56,638 ETH in long positions, valued at $236 million, are at risk of liquidation if ether falls to $4,170, according to Hyperdash data.
Crypto traders should remain vigilant for an ether (ETH) price drop below $4,200, which could trigger millions in long liquidations and increase market volatility.
As of writing, over 56,638 ETH in bullish long positions – valued at $236 million – faced liquidation risk on the decentralized perpetual exchange Hyperliquid in case of an ether price drop to $4,170, according to data from Hyperdash.
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The data also showed a risk of sizable liquidations at $2,150-$2,160 and $3,940. At press time, ether changed hands at $4,260, down nearly 5% on the day, according to CoinDesk data.
Andrew Kang, founder of the crypto venture capital firm Mechanism Capital, stated on X that large long liquidations could potentially drive ether prices down to $3,600.
“[I] would estimate we’re about to hit $5b in ETH liquidations across exchanges, taking us down to $3.2k – $3.6k,” Kang said.
Liquidations, or the forced closure of leveraged bets, happen when a trader’s position falls short of the margin requirements set by the exchange.
The margin shortage typically occurs when the market moves against the trader’s position, causing their account equity to fall below the minimum maintenance margin. This prompts the exchange to automatically close the position to prevent further losses and ensure borrowed funds are recovered.
Largely long liquidations cause a sudden surge in selling pressure, which pushes prices even lower, creating a cascading effect that can trigger additional liquidations. This negative feedback loop tends to amplify market volatility.
Read more: Dogecoin Sellers in Control as Monero Attacker Votes to Target DOGE; Bitcoin Below $116K
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Omkar Godbole is a Co-Managing Editor and analyst on CoinDesk’s Markets team. He has been covering crypto options and futures, as well as macro and cross-asset activity, since 2019, leveraging his prior experience in directional and non-directional derivative strategies at brokerage firms. His extensive background also encompasses the FX markets, having served as a fundamental analyst at currency and commodities desks for Mumbai-based brokerages and FXStreet. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
Omkar holds a Master’s degree in Finance and a Chartered Market Technician (CMT) designation.
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
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