Ether Sees $170 Million in Long Liquidations as Crypto Market Swings Sharply

Leveraged crypto shorts can generate outsized gains when prices fall, but exchanges forcibly close positions when rising prices exhaust a trader’s margin. The wallet known as pension-usdt.eth, which had previously made $49 million shorting cryptocurrencies, drew attention for a bearish position covering 50,000 ether. Its size left the trade particularly exposed to a rapid rally and the cascading effects of automated liquidation.

A sharp surge in ether triggered five liquidation orders against pension-usdt.eth within just 12 seconds, producing a $24 million loss. The forced closure required ether to be bought back into a rising market, adding demand and helping propel prices higher. The episode illustrates how a large leveraged position can unwind almost instantly and intensify a short squeeze as automated risk controls execute in succession.

Crypto derivatives let traders amplify exposure to bitcoin and ether, but sharp intraday moves can rapidly exhaust margin and force exchanges to close positions. The risk has spread beyond digital tokens as platforms including Binance give crypto-native traders access to leveraged bets tied to AI chip and memory names such as Micron Technology and SanDisk, tightening the link between cryptocurrency markets and volatile technology shares.

Bitcoin and ether swung sharply in both directions during the 24 hours through July 30, 2026, even as their net price changes remained modest. CoinGlass data showed about $280 million of leveraged positions were liquidated as both bullish and bearish traders were caught by the reversals. Losses also spread to traders chasing AI and memory-chip exposure through crypto platforms after a selloff beginning July 27 pressured Micron, SanDisk and other semiconductor shares.

Crypto futures allow traders to amplify positions with margin. When the market moves against them and their collateral becomes insufficient, exchanges forcibly close their positions, potentially intensifying the decline. Higher-than-expected U.S. inflation data and rising global government bond yields weighed on risk appetite. Although the U.S. Senate Banking Committee advanced the CLARITY Act on May 14, 2026, the move was not enough to offset macroeconomic pressure.

According to Coinglass, $563 million in leveraged long positions was liquidated in the 24 hours through May 18, 2026, the largest one-day total since February 6. Ether accounted for $244 million and Bitcoin for $160 million, while short liquidations totaled just $65 million. Ether was trading at about $2,129 at the time, down 10% for the week, while Bitcoin fell below $77,000 and was down nearly 5% over the same period.

Ethereum is a major crypto asset with substantial leveraged exposure, making it vulnerable to cascading liquidations when its price breaks below key support levels. The US Federal Open Market Committee kept interest rates unchanged on March 18 but raised its inflation outlook, pressuring risk assets. CoinGlass data showed that more than $2.5 billion in ETH long positions across exchanges could be liquidated if the token fell below $2,000.

On March 19, TradingView data showed ETH fell 7% in a single day to a low of $2,140, triggering about $144 million in long liquidations. By March 27, ETH had again fallen below $2,000 to $1,975, down 5% over 24 hours, with more than $111 million in additional long positions liquidated. SoSoValue data showed US spot ETH ETFs had recorded seven consecutive days of net outflows totaling $391.8 million.