Usman Salis
⬤ Ethereum continued trading in a liquidity-driven environment this week, with nearly all downside liquidity exhausted based on recent heatmap data. The remaining major liquidation cluster sits between $3,800 and $4,000, forming the largest concentration zone above current price levels. The chart shows thick layers of bright green and yellow liquidity overhead, marking areas where historical liquidation activity has concentrated and where price could logically move if volatility increases.
⬤ The heatmap reveals ETH swept through several tiers of downside liquidity in recent sessions, clearing dense structures below the $3,500 level and triggering multiple cascades across the lower section. The $3,800 to $4,000 zone appears as one of the strongest remaining clusters, creating a visually dominant liquidity band. This could be tapped if ETH begins retracing upward. Despite the broader downtrend from early October highs above $4,500, the layered buildup of overhead liquidity suggests a mechanical pull that may influence short-term price movement, particularly during periods of high leverage.
⬤ The heatmap structure reflects several weeks of lower highs and persistent selling pressure, yet key liquidity concentrations remain untested above spot levels. The color distribution becomes increasingly dense and bright above the mid-range, showing where the deepest liquidity pockets sit and potential price magnet zones exist. The recent downside liquidity sweep reinforces the asymmetry, leaving fewer liquidity targets below current price and more substantial clusters above.
⬤ This liquidity setup matters because such clusters often shape short-term ETH behavior when market flows are driven by liquidations and algorithmic execution. The prominent cluster between $3,800 and $4,000, combined with the near-complete cleanup of downside levels, creates conditions where Ethereum may gravitate toward higher liquidity zones. These dynamics can meaningfully influence sentiment and directional expectations across the broader crypto market.
Usman Salis
