According to the latest market data analysis, the trend of Ethereum prices may have a significant impact on the cryptocurrency trading market. Data shows that if the price of Ethereum falls below $4200, the long contracts on major Centralized Exchanges (CEX) could face liquidation pressure of up to $520 million.

On the contrary, if the price of Ethereum breaks through $4450, short contracts could face liquidations of up to $801 million. This data highlights the high volatility and risk of the market.

It is important to note that these liquidation data do not represent the exact number or value of contracts to be liquidated. In reality, they reflect the potential intensity of liquidations at different price points. This means that when the price reaches a certain level, the market may react violently due to sudden changes in liquidity.

The taller bars in the liquidation chart indicate that at this price point, the market may experience more intense fluctuations. This analytical method helps traders and investors better understand market dynamics and prepare for potential price volatility.

However, market participants should bear in mind that the inherent high volatility of the cryptocurrency market means that situations can change rapidly. Therefore, it is essential to continuously monitor market dynamics, maintain a cautious attitude, and adopt appropriate risk management strategies.

As the price of Ethereum continues to fluctuate within this sensitive range, the market will closely monitor its direction, as any significant price movement could trigger a chain reaction, impacting the entire encryption ecosystem.