Cryptocurrency markets opened the first week of November in the red, with short-term sentiment among derivatives traders turning negative. Capital and leverage are currently focused on short bets, increasing the likelihood of large-scale short liquidations in the coming weeks.
In this unbalanced liquidation situation, certain altcoins can cause significant losses to traders. Which is at risk?
sponsored
sponsored
1. Ethereum (ETH)
ETH’s 7-day liquidation map reveals a clear imbalance between potential liquidations on the long side and short side. Short positions are dominant.
If ETH recovers to $4,000 this week, over $4.2 billion of shorts could be liquidated. If the rally strengthens towards $4,300, total short interest could reach nearly $8 billion.
BeInCrypto’s recent analysis highlights a bullish divergence and hints at possible recovery momentum for ETH this week.
Analysts also noted that despite short-term fluctuations, the Ethereum network continues to set new records. These indicators reinforce strong fundamentals and encourage investors to accumulate ETH with significant declines.
For example, ETH application revenue has reached an all-time high, while the supply of stablecoins on the network continues to grow.
sponsored
Considering these factors, short sellers without proper risk management could face large-scale liquidations if the ETH price rebounds sharply.
2.ASTER
As of the first Monday of the first week of November, Aster’s liquidation map also shows a clear imbalance with short-side liquidations outweighing long-side risks.
If ASTER rises to $1.4, approximately $44 million of short positions could be wiped out. Conversely, if it falls to $0.9, long-term liquidations could exceed $15 million.
sponsored
sponsored
What could trigger a short-term liquidation of ASTER? The biggest risk likely stems from social media influence, particularly CZ’s recent posts regarding X.
Aster soared 30% after Binance founder Qiao Changpeng revealed that he personally purchased $2 million worth of ASTER tokens for long-term holding. This announcement prompted several other KOLs to publicly disclose their ASTER purchases.
Although prices have since corrected, uncertainty remains. If CZ releases new updates on ASTER, it could cause further short-term price spikes and lead to short-term liquidations. Short traders should be careful in situations like this.
3. DASH
The privacy coin story continues until November. This time, DASH (DASH) attracted attention, surpassing ZCash (ZEC) and hitting a three-year high.
Derivatives traders are turning bearish and increasing short exposure. If DASH rises to $105, over $13 million of short positions could be liquidated.
sponsored
sponsored
For X, some analysts are even more optimistic and predict a higher target.
“Next stop is $100-$140. If the privacy meta continues…don’t be surprised if it hits $250,” Tactical Investing predicted.
In a FOMO-driven rally, it’s hard to tell when the momentum will stop. As long as the community discussion remains bullish, shorting DASH could carry a significant risk of liquidation.
Altcoins that are gaining community attention, including ETH, ASTER, and DASH, reflect recycled themes from previous months, including the Ethereum ecosystem, DEX, and privacy stories. This pattern suggests a lack of new catalysts in the market.
Therefore, even if prices recover, such increases may be unsustainable. As volatility increases, both long and short traders can end up facing the same level of risk and loss.