Market intelligence indicates that the price movement of Ethereum is at a critical node. According to the latest data analysis, if the price of Ether breaks through the $4600 barrier, the cumulative short order on the major centralized exchange (CEX) may face a liquidation pressure of up to $1.088 billion. Conversely, if the price of Ethereum falls below the $4400 support level, the scale of cumulative long order liquidation could reach $1.422 billion.

This data reveals the current high tension in the market, with both long and short positions facing significant risks. It is worth noting that these liquidation figures do not represent the exact number of contracts awaiting liquidation or the precise liquidation value. In fact, they more accurately reflect the relative importance of different price points and their potential impact.

The height of the bars in the liquidation chart actually represents the degree of impact of a certain price range relative to adjacent ranges. In other words, a higher liquidation bar means that once the price reaches that area, it may trigger a more intense market reaction, mainly due to sudden changes in liquidity.

This clearing mechanism is a double-edged sword for market participants. On one hand, it can trigger rapid price fluctuations, presenting opportunities for investors; on the other hand, it carries significant risks, especially for high-leverage traders.

In light of the current sensitive market situation, investors should closely monitor the key price range of $4400 to $4600. Whether it breaks above the upper limit or falls below the lower limit, it could trigger a chain reaction, thereby having a profound impact on the entire cryptocurrency market.

In such a volatile market environment, risk management becomes particularly important. Investors need to carefully assess their risk tolerance and reasonably set stop-loss and take-profit levels to cope with potential severe price fluctuations. At the same time, continuously monitoring market dynamics and changes in fundamentals is also a wise move.