3 Altcoins face significant liquidation risks in the third week of November.

The cryptocurrency market has entered the second half of November, amid a total market capitalization of altcoins falling below the 1 trillion USD mark. The potential bounce back of many altcoins while investor sentiment is extremely pessimistic could lead to significant volatility and large-scale liquidations across various assets.

So which altcoins are facing this risk, and what are the specific factors that need to be closely monitored? Below is a detailed analysis:

Ethereum (ETH)

The liquidation map of Ethereum shows a clear imbalance between the potential liquidation volume on both the Long and Short sides. Currently, traders are piling up capital and using leverage for Short positions. This means they will face significant losses if ETH bounces back this week.

ETH liquidation map | Source: CoinglassSpecifically, if ETH rises above $3,500, over $3 billion in Short positions could be liquidated. Conversely, if ETH falls below $2,700, the total value of Long positions liquidated would be around $1.2 billion.

There are many reasons for investors to maintain a Short position. Last week, ETH ETF funds recorded outflows of up to 728.3 million USD. In addition, cryptocurrency billionaire Arthur Hayes also recently executed a transaction to sell ETH.

However, from a technical perspective, ETH is still holding strong at the important support zone around the $3,100 mark. This price level could trigger a strong bounce back. The sentiment indicator for ETH has also fallen into the extremely fearful zone — and history shows that ETH often spikes strongly from such conditions.

With these factors, the bounce back potential of ETH is entirely grounded, and if this happens, Short positions will face the risk of significant losses.

Solana (SOL)

Similar to Ethereum, the liquidation map of Solana also shows a clear imbalance, with short liquidation volumes dominating. The fall of SOL below $150 in November has led many short-term investors to expect the price will continue to plummet towards the $100 region. Not only retail investors but also “sharks” have shown a short-selling trend this month.

However, the ETF data for SOL brings positive signals. According to SoSoValue, the SOL ETF funds in the US recorded a net inflow of over 12 million USD on November 14 and a total of over 46 million USD in the past week. Meanwhile, both the BTC and ETH ETF funds recorded negative net inflows.

Total daily net flow of SOL ETF | Source: SoSoValueThis shows that the investment demand for SOL through the ETF channel remains very strong, providing momentum for SOL's bounce back. The liquidation map indicates that if SOL rises to $156, Short positions could be liquidated by nearly 800 million USD.

SOL liquidation map | Source: CoinglassConversely, if SOL falls to $120 this week, Long positions could face liquidation of about 350 million USD.

Zcash (ZEC)

In contrast to ETH and SOL, the liquidation map of ZEC shows that traders setting up Long orders are facing a significant amount of potential liquidation risk. Many short-term investors are optimistic, believing that ZEC will continue to set new highs in November. This view is reinforced by the surge in the amount of ZEC locked in the Zcash Shielded Pool this month, along with optimistic forecasts from some experts that ZEC could reach 10,000 USD.

ZEC liquidation map | Source: CoinglassHowever, ZEC continues to face strong resistance around the price range of $700, causing many analysts to be concerned about the possibility of a correction this week. If ZEC falls below $600, Long positions could be liquidated over 123 million USD.

In addition, data from Coinglass shows that the total open interest of ZEC has reached an all-time high of 1.38 billion USD in November, reflecting a high level of leverage usage and increasing the risk of significant volatility along with large-scale liquidations.

Therefore, holding a Long position with ZEC may yield short-term profits, but without a clear profit-taking or stop-loss strategy, investors will face significant liquidation pressure.

Mr. Giáo