The Ethereum market is facing a critical price watershed that could trigger large-scale liquidation events. According to the latest market data analysis, the direction of Ethereum's price will have a significant impact on traders in mainstream centralized exchanges (CEX).

If the price of Ethereum breaks below the $4000 mark, bullish traders will face a severe test. In this case, long positions on major CEX platforms may encounter liquidation pressure of up to $1.841 billion. This means that a large number of leveraged traders may be forced to close their positions, further exacerbating the downward trend in the market.

On the contrary, if the Ethereum price can break through the resistance level of $4300, short traders will be in a precarious position. Data shows that at this price point, the cumulative short liquidation scale could reach $1.88 billion. In this case, it may trigger a strong wave of buying, pushing the price further up.

It is worth noting that these liquidation data do not represent the exact number or value of contracts to be liquidated. In fact, this data reflects the relative importance and impact of potential liquidation events at different price points. In other words, the liquidation chart shows the intensity of market impact that may occur when the price reaches a certain specific level.

A higher liquidation bar in the bar chart indicates that once the price reaches that level, the market will react more violently due to a sudden change in liquidity. This reaction may lead to rapid price fluctuations, which in turn can affect the stability of the entire cryptocurrency market.

It is crucial for traders and investors to closely monitor these key price levels. Whether bullish or bearish, risk management should be exercised cautiously to avoid significant losses in a high-leverage environment. At the same time, this situation also presents potential profit opportunities for experienced traders, provided they have sufficient market insight and risk management skills.

As the price of Ethereum fluctuates within this sensitive range, market participants should remain vigilant and be prepared to respond to various possible scenarios. Regardless of the final outcome, this situation will have a significant impact on the direction of the Ethereum market in the short term.