The Crypto Assets market is facing another critical moment. The current price movement of Ethereum (ETH) is worrisome, and market analysts warn that if certain key levels are broken, it could trigger a catastrophic chain reaction.

According to the latest data, if there is severe volatility in the ETH price, it could trigger a large-scale liquidation event exceeding $1.8 billion. This means that more than 370,000 traders may face significant financial losses. This potential market turmoil is chilling and highlights the enormous risks of using high leverage in crypto asset trading.

Currently, the price of ETH is hovering around $4150, seemingly calm on the surface, but there are already undercurrents in the derivatives market. A large number of high-leverage positions, especially long positions, have accumulated in the market. It is worth noting that the potential liquidation size of ETH alone could exceed $500 million, which is more than double the potential liquidation amount of Bitcoin.

This situation is not unprecedented. In the past, a slight pullback in ETH prices triggered a liquidation wave of nearly $2 billion, resulting in over 400,000 traders being hit hard within 24 hours. The current market conditions bear an astonishing resemblance to that thrilling event.

Why is ETH always at the center of liquidation storms? There are mainly two reasons: First, as the second largest crypto asset by market capitalization, ETH has ample trading depth and frequent price movements, attracting a large number of institutions and retail investors for leveraged trading. Second, the overall leverage ratio in the current market has far exceeded safe levels. Many traders hold a sense of luck, using 10x or even 20x leverage for trading, without realizing that even a 5% fluctuation in the price of ETH is enough to trigger forced liquidation of high-leverage positions.

In this high-risk market environment, investors need to remain highly vigilant. Excessive use of leverage can not only yield substantial returns but also lead to the painful result of instant zeroing. For ordinary investors, cautiously using leverage and reasonably controlling risk exposure is the key to surviving and thriving in the turbulent Crypto Assets market.

As the market continues to focus on the price movement of ETH, investors should always be alert to the potential for sharp fluctuations. In this market full of opportunities and risks, rationality and prudence are always the best investment strategies.