Ethereum’s $470M Liquidation Isn’t August All Over Again: Here’s Why This Drop Feels Different

Ethereum’s latest liquidation event may look similar on the surface to August’s flush-out, but the underlying market pattern tells a very different ￰0￱ suggest that the previous wipeout reset leverage in a buyer-controlled uptrend, while this week’s crash unfolded in a seller-dominated, bearish ￰1￱ Flashback? Not Quite In the past two months, the network has witnessed only two major long liquidations above $400 ￰2￱ August 14, Ethereum’s $444 million in long liquidations came amid a buyer-dominated ￰3￱ interest stood at $29 billion, and funding rates were positive at +0.013. This indicated aggressive long positioning and high ￰4￱ subsequent price drop triggered a cascading liquidation of overextended longs, but the broader uptrend remained ￰5￱ that period, the price closed above the EMA 20, SMA 50, and AVWAP levels, and confirmed that buyers still held structural ￰6￱ forward to September 22, when long liquidations reached $467 million, and the setup was notably ￰7￱ interest, for one, had eased to $27.3 billion, while funding slipped slightly negative to ￰8￱ depicted more pressure to maintain or add short positions.

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