☝🏽✨️ Ethereum is positioned in what could be described as a perfect liquidation trap, and the next move could be sharp.
Open interest data reveals massive liquidation walls on both sides of the market, collectively exceeding $1 billion. A move of around 10% would be enough to trigger a liquidation cascade:
- To the upside: $1.64 billion in short positions could be liquidated if ETH pushes higher.
- To the downside: $1.05 billion in leveraged long positions are exposed if the price declines.
This does not reflect strong directional conviction, but rather extreme, compressed leverage. When both sides are so heavily positioned, price doesn't adjust gradually—it tends to snap. In this setup, liquidity acts more like fuel than support.
The market is coiled with tension, and ETH appears to be the trigger. The key question now is: which side blinks first the bears or the bulls? 👀