Is an Ethereum liquidation storm approaching?

$1.7 billion ETH potential liquidation zones exposed, three key price levels at a glance

February 6 News, the latest on-chain monitoring shows that if Ethereum's price continues to decline, ETH positions worth over $1.7 billion could be forcibly liquidated. Currently, Ethereum hovers around $1896, but the liquidation prices for several high-leverage large positions are well below the current price, becoming potential risk points of market concern. Once these zones are breached, automatic sell-off mechanisms could rapidly amplify volatility.

The first high-risk zone is between $1560 and $1690. This range mainly comes from Trend Research's leveraged positions, which hold approximately 356,150 ETH, with a market value of about $670 million. Due to the use of borrowed leverage, a price drop of about 10% to 17% could trigger concentrated liquidations, putting significant short-term pressure on the market.

The second zone is associated with Ethereum co-founder Joseph Lubin and two anonymous whales, holding a combined total of about 293,302 ETH, valued at approximately $550 million. The liquidation range is between $1329 and $1368. Although farther from the current price, if the upper zone is breached, a chain reaction could push the price into this band.

The third zone is near $1000, controlled by an entity called "7 Siblings," which holds about 286,733 ETH. The liquidation prices are concentrated around $1075 and $1029. This zone would only trigger under extreme market conditions, but historically, similar liquidation chains have caused deep corrections in a short period.

Liquidation levels are essentially hidden "pressure switches" on the chain. When triggered, the system automatically sells to cover loans, creating a cascading effect. ETH is still above these zones, but the market is closely watching price movements. If the downtrend continues, short-term volatility could be significantly amplified.