The post Ethereum on the Edge: What Could Happen if ETH Falls Below $4,200? appeared on BitcoinEthereumNews.com.

The post Ethereum on the Edge: What Could Happen if ETH Falls Below $4,200? appeared first on Coinpedia Fintech News Ethereum (ETH) has long been a key player in the crypto market, but recent volatility has investors on edge. Analysts are now closely watching the $4,200 mark, a crucial support level that could determine ETH’s short-term trajectory. A drop below this threshold is believed to trigger a wave of selling, impact market sentiment, and influence DeFi and NFT ecosystems built on Ethereum. Could the ETH price bounce back to $4,500, or are we heading toward a bearish slide toward $3,800? Massive Liquidation Risk for ETH Holders Ethereum has been steadily trading above $4,000 for over a week now, displaying the growing strength of the bulls. The latest ETH exchange liquidation map from Coinglass, shared by Ted, highlights a critical setup for price action. The chart reveals a significant concentration of leveraged long positions between $3,945 and $4,200. If Ethereum were to dip into this zone, it could trigger a wave of long liquidations, potentially accelerating a move lower as cascading sell orders amplify downside pressure. On the other hand, a sizable cluster of short liquidations is forming above $4,500 to $4,700. A sustained breakout above these levels could set off a short squeeze, forcing traders to cover their positions and fueling a rapid price rally. Overall, the data suggests Ethereum is approaching a high-volatility zone. Price could either sweep lower liquidity levels before rebounding or break higher and liquidate shorts aggressively. Traders should watch the $4,200 support area closely and monitor whether ETH can reclaim and hold above $4,500, which could open the door to a strong bullish continuation. What’s Next for the ETH Price Rally? The ETH price had been facing immense resistance at $4000 as the bears prevented…

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Filed under: News - @ September 20, 2025 4:25 pm