Ethereum (ETH) and Bitcoin (BTC) traders are currently opening significant overleveraged positions with millions of margin. Based on the overleveraged positions, these traders are facing the risk of liquidation however their confidence shows that they may be insiders and know something. The crypto analyst discussed this liquidation risk in recent posts on social media.

ETH to See $396.42M, $255.89M in Potential Long and Short Liquidations

Data reveals that the crypto market is currently standing at a crucial juncture as potential liquidations are raising concerns. Hence, substantial price movements can be triggered by the overleveraged positions on Ethereum and Bitcoin. Ethereum traders owning leveraged positions are experiencing likely risk of liquidations at important price levels.

Particularly, if $ETH surges to $1,960, the short positions could go through a liquidation of up to $396.42M. This indicates that several traders have potentially bet against the price rise of $ETH. On the other hand, if $ETH dips to $1,859, almost $255.89M will be liquidated in long positions. In this respective a great number of traders may forcibly be pushed out of positions.

BTC to Record $257.51M, $288.07M in Potential Long and Short Liquidations

Apart from that, Bitcoin has been going through sideways price movements, fueling the accumulation among short and long positions. Irrespective of lacking a clear trend, Bitcoin traders are facing a significant risk of liquidation with a massive price pressure. Thus, if BTC declines to $81,300, almost $257.51M is going to be liquidated in long $BTC positions. However, if Bitcoin jumped to $85,600, nearly $288.07M would be liquidated in short positions.

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With the above-mentioned liquidation levels, the whales may capitalize on these conditions. The high-value liquidation spots give an opportunity to drive price to the respective targets. Such a move could lead to forced closures while boosting price swings. The whales have intentionally been carrying out this manipulation to push price to the areas of increased liquidity, leveragign liquidation cascades.

Liquidation Risk Highlights the Likelihood of Increased Price Volatility

According to CW, the heightened risk of Bitcoin and Ethereum liquidations due to the overleveraged positions raises caution. Hence, the investors need to be careful while $BTC and $ETH reach crucial price zones. With the possibility of massive upcoming liquidations, both the assets could record increased volatility. Therefore, the leveraged traders need to be ready for swift price action as well as enormous liquidations that could influence the short-term price trends.