The crypto market faced brutal revisions on Monday, rattling traders through Bitcoin (BTC) and Ethereum (ETH) with a close to $500 million liquidation.
More than 115,000 traders have been liquidated as Bitcoin slipped to $115,000 and Ethereum plunged into the $4,200 danger zone, according to Coinglass data. The Cascade was fueled by high leverage exposure and produced the domino effect of forced sales across exchanges.
Bitcoin’s sharp drop erased more than $3,000 in value within hours, pulling major altcoins into red. ETH fell nearly 5%, while Solana (Sol) and Dogecoin (Doge) fell 4-5% respectively.
XRP tested a key $3 support level, highlighting vulnerabilities across the market. Interestingly, ChainLink (Link) defied the trend and recorded a profit of 5% every day despite the confusion.
Ethereum faces a cliff of liquidation
Ethereum looks particularly vulnerable when prices fall below $4,200. HyperDash data shows that over 56,000 ETH long positions worth around $236 million are at risk of liquidation at nearly $4,170.
Additional liquidation clusters are located around $3,940 and around $2,150-$2,160, at a level that can amplify volatility if triggered.
Mechanism Capital founder Andrew Kang warned that if the liquidation cascade continues, ETH could drop by as low as $3,600. He added that the overall ETH liquidation across the exchange could reach $5 billion, potentially driving even lower prices before it stabilizes.
ETH's price losing momentum on the daily chart. Source: ETHUSD on Tradingview
Bitcoin Dilla accumulation or general market breakdown?
Despite the sale, some analysts argue that the collision may set a stage for whales accumulation.
Crypto analyst Crypnuevo said Bitcoin recently printed a new all-time high before a sudden $1 billion liquidation event. He suggested that one whale has absorbed much of the forced sales, informing the agency players that they may be scooping up BTC at discounted prices.
If the whales are actually accumulating, once the leveraged position is reset and the pressure is relieved, the dip can act as a springboard for the next rally. However, geopolitical uncertainty and vulnerable levels of support must remain cautious.
The next few days will determine whether Bitcoin will stabilize above $115,000, and Ethereum holds $4,200, or whether another wave of liquidation will drag the market into the corrections more deeply.
ChatGpt cover image, TradingView’s Ethusd chart
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