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Ethereum price fluctuations may trigger massive contract liquidations, posing both long and short risks.
On August 13, according to data from the data platform, if Ethereum breaks through its historical high, the cumulative short order liquidation intensity on mainstream trading platforms will reach 1.199 billion.
Conversely, if Ethereum falls below 4550 USD, the cumulative long order liquidation intensity on mainstream trading platforms will reach 2.128 billion.
The liquidation chart does not display the exact number of contracts pending liquidation or the precise value of contracts being liquidated. The bars on the liquidation chart actually show the significance, or intensity, of each liquidation cluster relative to nearby liquidation clusters.
Therefore, the liquidation chart shows to what extent the underlying price will be affected when it reaches a certain position. A higher "liquidation pillar" indicates that there will be a stronger reaction due to liquidity waves once the price reaches that point.