Bitcoin and Ethereum Facing Liquidity Risks Amid On-Chain Data Concerns
Crypto Market Liquidity Event Triggers $261M in Liquidations
The cryptocurrency market experienced a significant liquidity event on August 14, 2025, resulting in over $261 million in leveraged position liquidations. The sell-off was primarily driven by U.S. Producer Price Index (PPI) data-triggered short positions, leading to widespread margin calls. Bitcoin (BTC) and Ethereum (ETH) faced $29 million and $115 million in liquidations, respectively, as algorithmic trading intensified downward price momentum.
Ethereum Stabilizes Above $4,400 Amid Market Volatility
Ethereum (ETH) managed to stabilize above the key $4,400 support level after a 4.83% daily drop, with technical indicators suggesting potential retests of the $4,600 resistance level. The market volatility on August 15 briefly pushed ETH below $4,400, closing at $4,414.86 with a 28% decrease in 24-hour trading volume. Despite the correction risks, accumulation patterns and institutional buying activities indicate bullish fundamentals for Ethereum.
Santiment Warns of Cooling Phase in Bitcoin and Ethereum Markets
Analytics firm Santiment has flagged concerning on-chain data for both Bitcoin and Ethereum, indicating a potential market cooling phase. Bitcoin's trading volume post-July peak showed a bearish divergence, alongside declining daily active addresses and network growth. Ethereum faces higher correction risks with a 40% 90-day MVRV ratio, while whale accumulation and retail buying activities signal a market consolidation. Social media sentiment reflects over-optimism, urging caution amid macroeconomic uncertainties.
As the crypto market navigates through these challenges, investors are advised to closely monitor on-chain metrics, whale behavior, and macroeconomic indicators to gauge the sustainability of the current rally. The recent liquidation event and on-chain data concerns highlight the need for robust risk management strategies in a volatile market environment. With Bitcoin and Ethereum at pivotal levels, the coming weeks will be crucial in determining the direction of the broader market trend.