Ethereum is showing two conflicting signals at once. Leverage data points to heavier downside liquidation pressure, while onchain activity has climbed to record highs even as price remains far below its peak. Ethereum Liquidation Map Shows Larger Downside Liquidity Clusters An Ethereum liquidation map shared by analyst Ted Pillows highlights significant leveraged positions that could be triggered if price moves sharply in either direction. The data shows that $4.51 billion in short positions would face liquidation if Ethereum rises by 20%, while $5.31 billion in long positions would be liquidated if the price falls by 20%. Ethereum Exchange Liquidation Map. Source: CoinGlass The chart visualizes cumulative liquidation leverage across major exchanges, including Binance, OKX, and Bybit. It also marks Ethereum’s current price near $2,057 at the center of the liquidation map. The data suggests that both long and short positions are concentrated around key levels, which could accelerate volatility if price moves toward those clusters. However, the distribution of liquidation levels appears heavier on the downside. According to Ted Pillows, more liquidity clusters are building below the current price structure. In leveraged markets, these clusters often act as areas where forced liquidations can occur if price reaches those levels. If Ethereum declines toward those lower liquidity zones, long positions using leverage could face forced liquidations, which may intensify downward price movement. Conversely, a strong upward move could trigger short liquidations, potentially fueling a short squeeze as traders rush to close positions. Ethereum Record Network Activity May Signal Pressure Building for a Bigger Price Move Ethereum network activity has climbed to record highs even though the asset still trades far below its previous peak, according to a chart shared by Crypto Patel using CryptoQuant data. The chart compares Ethereum’s total active addresses with price action and shows a clear divergence between rising onchain usage and weaker market performance. Ethereum Total Active Addresses Count. Source: CryptoQuant The visual shows active addresses moving above past highs, including levels seen during the 2020 to 2021 rally. In that earlier cycle, the rise in active addresses came alongside a sharp increase in Ethereum’s price. This time, however, the chart shows a different pattern. Network participation has expanded, but price has remained under pressure and, as the post notes, still sits more than 50% below its peak. That divergence may point to a market where usage is strengthening before price fully responds. In many cases, rising active addresses suggest higher transaction demand, broader user participation, or growing onchain engagement. When that trend continues while price lags, analysts often read it as a sign that underlying network strength is improving faster than market sentiment. At the same time, the chart also warns that strong network activity alone does not guarantee an immediate rally. The note on the right side of the image highlights that active addresses reached record levels while Ethereum’s price collapsed more than 50%. That means heavy usage can exist during periods of capital outflows and broader market weakness. Still, if capital returns and network growth remains strong, this setup could support a stronger Ethereum recovery later. In that case, the gap between record activity and lagging price may narrow through upward price adjustment. Until then, the chart suggests Ethereum is showing strong fundamental network use, but the market has not yet fully priced that in.
