6 Big Impacts of Ethereum’s CEX Liquidation: From Price Crash to Rp586 Billion Whale Action!

Jakarta, Pintu News – Ethereum (ETH), as one of the most liquid crypto assets in the world, is now in the limelight due to a series of massive liquidation events on the Centralized Exchange (CEX). An OKX article (October 6, 2025) mentions that leveraged trading on CEX encourages high risk when Ethereum price hits certain levels.

In fact, in one instance, the liquidation value reached more than $900 million or around IDR 14.93 trillion (at an exchange rate of USD IDR 16,589). Here are six important impacts of Ethereum CEX liquidation and how investors can deal with them.

1. Breaking Certain Price Could Trigger IDR32 Trillion Liquidation

According to OKX, ETH price movements largely determine whether a large liquidation will occur. If the price rises above $4,700, the liquidation of short positions could reach $1.373 billion. Conversely, if ETH falls below $4,400, long positions could be liquidated to the tune of $1.99 billion.

This means that traders using leverage should pay attention to support and resistance levels to avoid huge losses due to automatic liquidation by the platform.

Also Read: Trump’s Secret Plan May Push Bitcoin (BTC) to $250,000!

2. CEX Plays a Central Role in the Liquidation Wave

Most leveraged transactions are conducted on Centralized Exchanges (CEX) such as OKX, Binance, or Bybit. When a margin call is met, the CEX system will automatically close the trader’s position to protect borrowed funds.

OKX explains that the concentration of leverage on CEX amplifies the domino effect when prices fall or rise sharply. Therefore, it is important for traders not to over-leverage and have adequate margin reserves.

3. Whale Activity Could Shake Ethereum Price

Whales –large investorsholding thousands of ETH – can significantly affect the market. For example, one whale wallet saw a liquidation of $36.4 million or IDR 603.85 billion, according to the OKX report.

Whales can trigger panic selling by moving ETH to exchanges, signaling that they might sell in large quantities. This could set off a chain reaction, especially in a crypto market that is heavily influenced by sentiment.

4. DeFi Liquidation Triggered as ETH Falls

Not only in CEX, liquidation also occurred in DeFi protocols such as Aave, Compound, and MakerDAO. Many crypto loans use ETH as collateral. When ETH prices fall, DeFi platforms have to liquidate assets to maintain the collateral ratio.

OKX noted that in one incident, there was a $22 million (approximately Rp364.96 billion) DeFi liquidation. This proves how closely linked the price of Ethereum is to the stability of the DeFi ecosystem.

5. Systemic Impact: Other Crypto Could Get Infected

Ethereum is often used as a benchmark for crypto market sentiment. When ETH experienced a major liquidation, other cryptos such as Bitcoin (BTC), Solana (SOL), and altcoins such as PEPE (Pepe Coin) were also affected.

Mass liquidations can lead to a “cascading” effect, where other assets are dragged down by the price drop, especially those with a high correlation to Ethereum. This leads to broader market volatility.

6. Risk Management Strategy: The Key to Surviving the Market

Faced with this huge risk, OKX suggests several risk management measures, among others:

• Use Stop-Loss: Set a maximum loss limit so that the position is automatically closed before the loss widens.
• Avoid Over-Leverage: Use leverage wisely. High leverage means the margin of error is very small.
• Portfolio Diversification: Don’t put all your funds in ETH or just one asset.
• Monitor Sentiment and On-Chain Activity: Watch out for large transfers to exchanges or sudden uptrends in transaction volume.

With this strategy, investors can remain active in trading without having to face sudden, costly liquidations.

Conclusion: Anticipation is Better than Reaction

Ethereum CEX liquidation is an inevitable phenomenon in the age of margin-based and highly leveraged trading. For crypto investors, an understanding of liquidation trigger prices, the role of CEX, and risk mitigation strategies is the foundation for surviving in this volatile market.

Also Read: 5 Robert Kiyosaki Predictions: USD Crashes & Crypto is Bought, Bitcoin Price Breaks Rp2 Billion!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• OKX. Ethereum CEX Liquidation: Key Insights, Market Impact, and Risk Management Strategies