Ethereum's current position is quite interesting — both the upper and lower areas are danger zones; moving in either direction could trigger a blast.

According to on-chain liquidation data, ETH is currently stuck in a very delicate price range. Pushing upward risks triggering a short squeeze, dropping downward could unleash a long squeeze. Combined, there are nearly $2.5 billion in ammunition waiting to be triggered in either direction, just waiting to see which side can't hold.

First, the lower side. The $3158 level has $1.43 billion in long liquidation volume stacked up. What does that mean? It means that once the price falls below this point, a large number of leveraged longs will be forcibly liquidated. This kind of stampede is not linear — when the first batch of longs is liquidated, it will cause more selling pressure, triggering a second batch, third batch... a chain reaction that could double the downward move. So this level is essentially the life-and-death line for the bulls; if it can't hold, a bloodbath is imminent.

Now, looking at the upper side. The $3485 level has $1.03 billion in short positions buried there. Many traders are short in the $3480 to $3500 range, betting that ETH won't go higher. But what happens if it truly breaks through? Shorts would be forced to buy back the coins, turning into a buying force that pushes prices higher. This is a classic short squeeze scenario — once the price breaks through resistance, short covering accelerates the rally, heading straight for $3600 or even higher.

So, the range between $3158 and $3485 is like a compressed spring. The market won't hesitate here — with $2.46 billion in liquidation volume sitting there, a sharp move in either direction is inevitable. A breakout upward accelerates the squeeze, a break downward triggers a long liquidation crush.

Interestingly, at this point, retail traders' judgments become less important. The real determinant of direction is who can't hold out first — the liquidation mechanism is leading the price, not traders' predictions. When volatility hits, it will come quickly, and capital movement will be violent.

In the next few days, just keep an eye on these two levels.