Understanding Ethereum's Relative Intensity Chart: Key Liquidation Levels at $2800 and $3100

Market data from Coinglass reveals critical price thresholds where Ethereum faces substantial liquidation risk. With ETH currently trading around $1.97K, understanding these liquidation zones becomes essential for market participants. The relative intensity chart serves as a visual guide to identifying where the greatest price movement pressure exists across major centralized exchanges.

What the Relative Intensity Chart Shows

The relative intensity chart displayed by Coinglass illustrates the comparative significance of liquidation zones rather than absolute contract counts. Each bar on this chart represents the weight of liquidations at specific price levels relative to nearby zones. A taller bar signals that when the underlying price reaches that point, the market will experience more pronounced reactions triggered by cascading liquidations and liquidity shifts. This visualization helps traders pinpoint where the most influential liquidation clusters are positioned.

Critical Liquidation Thresholds for Ethereum

Two price levels currently stand out on Ethereum’s liquidation landscape. If ETH declines to $2800, cumulative long positions facing liquidation across leading exchanges will reach approximately $796 million. Conversely, should Ethereum rally above $3100, short liquidations could accumulate to roughly $889 million. These figures represent substantial liquidity concentrations that could amplify price movements if triggered.

How Liquidity Waves Create Price Cascades

When the relative intensity chart shows significant liquidation bars at specific price levels, it indicates where liquidity waves will have the strongest impact. As traders’ positions get liquidated, they generate selling or buying pressure depending on the direction, which can intensify price swings beyond the initial trigger. The higher the bar on the relative intensity chart, the more pronounced this chain reaction typically becomes when price reaches that threshold.

What This Means for Market Participants

Understanding these relative intensity levels provides a framework for anticipating where price volatility will likely concentrate. Rather than focusing on absolute liquidation volumes, traders can use the relative intensity chart to identify which zones have the most critical impact on market structure. As Ethereum navigates between its current level and these critical thresholds, monitoring the relative intensity chart becomes a practical tool for assessing potential price action and risk management strategies.