Ethereum fell to around $2,570 on the evening of October 7, breaking through the important $2,700 zone. Over the day, ETH lost about 5.9%, and the drop triggered a major wave of forced closures of leveraged positions. The total amount of liquidations for Ethereum was $233.36 million.
The main blow fell on longs
Of the total liquidation volume, about $221.87 million came from long positions. That is roughly 95% of the entire amount. The pressure was especially strong in the last 12 hours. During this period, about $226.22 million in positions were liquidated, including $216.11 million in longs. Liquidation occurs when the collateral becomes insufficient to maintain a leveraged position and the exchange forcibly closes it.
The largest liquidation in the market
The largest single liquidation among cryptocurrencies was on Ethereum. An ETHUSDC position on Binance worth about $26.64 million was forcibly closed. This shows how large leveraged positions were in the market before the drop.
Where liquidation risk remains
Below the current ETH price, there are about $1.35 billion in long positions that could become vulnerable if the decline continues. Above the price, there are about $999.78 million in potentially vulnerable short positions. The liquidation map does not mean that all of these trades will necessarily be closed. It shows the price areas where a large number of positions may come under pressure.
The nearest important level
One of the nearest major zones is around $2,511. This area contains about $112.83 million in potential long liquidations on Hyperliquid. With ETH at around $2,605.65, the distance to this zone was about 3.6%. A day earlier, the distance was about 7.4%. This means the price has moved noticeably closer to the next large liquidity cluster.
The market is still long-heavy
Despite the drop, the long-to-short ratio for ETH remains skewed toward buyers. On Binance, the ETH/USDT metric is around 3.32. On OKX, it is around 2.13. Among Binance's largest traders, the ratio is about 2.34 by accounts and 1.62 by position volume. This suggests that after the first wave of liquidations, the market still has not fully cleared out its longs.
What the funding rate shows
At the same time, Ethereum's funding rate has turned negative. By open interest, it was around -0.0041%, and by volume, around -0.0034%. Negative funding means that the balance in the futures market has shifted toward shorts. This creates a contradictory picture: by number of positions, the market is still overloaded with longs, but short-term demand for shorts has already increased noticeably.
What's next
The main zone becomes the $2,500-2,511 area. If the price continues moving down, the market may test the next layer of leveraged long positions. If ETH holds above this area, the first wave of liquidations may already have removed a significant portion of excess risk. The main indicator right now is whether open interest can stabilize after the drop.
Adding leverage so the move means something?
A drop of almost 6% in a day shows how quickly a major move turns into a cascade of liquidations with high leverage. The size of a trading result depends not only on the percentage move, but also on the available notional. In prop trading, a trader passes a challenge and gains access to a large company account without needing to use comparable personal capital. This allows working with a larger notional without having to increase leverage to extreme levels.