Crypto Liquidations Approach $900 Million as Ethereum Tests $5,000 Ceiling

Nearly $900 million in leveraged cryptocurrency positions were wiped out in the 24-hour period ending late 25 August, according to data compiled by analytics platform Coinglass. The firm counted 147,580 traders whose long- and short-bets were forcibly closed as volatility intensified across major tokens, with longs accounting for roughly $820 million of the total losses.

The liquidation wave came on the heels of a sharp price swing in Bitcoin and an aggressive rally in Ethereum. Bitcoin slumped about $4,000 within minutes on 24 August, triggering more than $300 million in long liquidations. Hours earlier, Ethereum’s climb to the high-$4,900 area, its highest level since the 2024 market peak, had squeezed bearish positions, driving intraday liquidations to more than $390 million, the bulk of them shorts.

The week’s turbulence began on 22 August when a short squeeze erased some $200 million in bearish bets within a single hour, including $112 million tied to Ethereum. By 23 August, liquidations of short positions across the market over a 24-hour span had reached nearly $500 million as traders scrambled to cover exposure to Ethereum’s advance.

Derivatives desks are now watching the $5,000 threshold for Ethereum. Coinglass estimates that a break above that level could force the closure of as much as $2.2 billion in outstanding ETH shorts, potentially amplifying price swings. The latest shake-out underscores the persistent leverage in crypto markets and the speed with which positions can be unwound when prices move sharply in either direction.

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