Ethereum Faces $5B Liquidation Threat as Critical Week Begins

• Ethereum liquidations near $5B raise risk of sharp downside price moves
• Analysts split as ETH faces $4,550 resistance while support holds near $4,190
• Macro events this week may dictate Ethereum’s path toward $3,600 or $6,000

Ethereum is entering a decisive week as traders brace for heightened volatility and shifting market dynamics. With a current price of around $4,267 and a market capitalization of over $515 billion as of press time, cryptocurrency has witnessed a sharp 6.5% downward correction in the last 24 hours. Despite its strong performance earlier this year, pressure from liquidations and global economic events is casting uncertainty on its immediate trajectory.

A $5 Billion Liquidation Wall

The latest data revealed that Ethereum liquidations have neared $5 billion, with significant clusters concentrated at $3,940 and further down around $2,150. This positioning exposes the market to potential long squeezes. Andrew Kang cautioned that a deep wipeout could drag ETH prices toward $3,200–$3,600 if momentum breaks down.

At the same time, on-chain data from Glassnode highlights that Ethereum is struggling with a key resistance level near $4,700. This level has historically acted as a ceiling where selling pressure ramps up, making it a major hurdle for bulls to clear.

How risky is it? This level of leverage is a hot topic. Here’s our report on the risks of holding Ethereum at these levels.

Analyst Outlooks Split Between Downside and ATH

Opinions remain divided among analysts. Dariusz Kowalczyk emphasized that the $4,550–$4,571 band is pivotal. A reclaim of that range could open the path toward a new all-time high. For now, he placed immediate support between $4,240 and $4,190.

On the bullish side, Crypto Caesar noted Ethereum’s weekly closes above the critical $4,090–$4,053 level. He interpreted this as confirmation of structural strength, citing bullish shifts in market character. 

According to him, the breakout from accumulation zones has already laid the groundwork for price discovery, with $5,000 seen as the next psychological barrier before acceleration toward $6,000.

Macro Events Could Decide ETH’s Fate

Beyond charts, broader market events could determine Ethereum’s fate this week. Traders are monitoring a series of developments, a Washington meeting between Trump and Zelensky on Monday, the release of July’s FOMC minutes on Wednesday, U.S. jobless claims on Thursday, and a speech from Federal Reserve Chair Jerome Powell on Friday.

Each carries the potential to sway global risk appetite, thereby affecting crypto markets.

The institutional fuel. This macro-driven market is also seeing a flood of institutional interest. Here’s a look at the powerful buying that could lead ETH to a $15k price target.