Crypto traders need to stay alert as the price of Ether (ETH) approaches $4,200, which may trigger significant liquidations.

Currently, more than 56,638 ETH valued at $236 million are at risk of liquidation if prices drop to $4,170, according to data from Hyperdash.

Key Points:

• A drop below $4,200 could lead to substantial long liquidations, intensifying market volatility.
• The potential for further liquidations exists at price points near $2,150-$2,160 and $3,940.
• At present, Ether’s price is approximately $4,260, reflecting a nearly 5% decline.

“[I] would estimate we’re about to hit $5b in ETH liquidations across exchanges, taking us down to $3.2k - $3.6k,” Andrew Kang stated on X.

Liquidations happen when a trader’s position does not meet margin requirements, forcing exchanges to close the position, increasing selling pressure and market volatility.

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