The altcoin derivatives market in the final week of September shows a sharp imbalance between the total accumulated volume of Long and Short positions. This imbalance results from over $200 billion in market capitalization being wiped out, dragging many altcoins lower.
In this context, short-term traders display strong bearish sentiment as potential Short liquidations spike.
1. Ethereum (ETH)
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Ethereum faces the largest potential liquidation volume among altcoins in the last week of September. The 7-day liquidation map reveals that traders are allocating more capital and leverage to Short positions, pushing Ethereum’s potential liquidation size into the billions of dollars.
At the time of writing, the price of ETH has dropped over 5%, sliding from above $4,400 to below $4,200.
If ETH rebounds to $4,500 this week, total accumulated Short liquidations could reach $4.5 billion. If positive news helps ETH recover its recent losses and climb back above $4,900, total Short liquidations could approach $10 billion.
On the other hand, total Long liquidations could reach $900 million if ETH falls further to $3,560 this week.
Traders have solid reasons to increase Short exposure. A recent BeInCrypto report shows the number of profitable ETH addresses at an all-time high, while Ethereum whales are starting to take profits at historic gain levels.
However, ETH’s price decline could trigger fresh demand. ETH accumulation shows no signs of slowing. This demand may encourage institutions and companies to buy, fueling a rebound that could liquidate Short positions.
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Solana ranks second in potential liquidation volume this week.
Today’s drop of more than 7% has fueled overwhelming bearish sentiment among derivatives traders. As a result, total potential Short liquidations significantly outweigh Long liquidations.
The 7-day liquidation map shows that if SOL rebounds to $250 this week, more than $2.5 billion worth of Short positions could be liquidated. Conversely, if SOL falls below $190, around $215 million in Long positions could be liquidated.
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Just days ago, the SEC approved the Grayscale Digital Large Cap Fund (GDLC), the first multi-asset crypto ETP, which holds BTC, ETH, XRP, SOL, and ADA. The SEC also approved general listing standards for ETFs. These developments strongly benefit SOL.
If today’s sell-off fades and these positive catalysts continue influencing the market, SOL’s price may recover, putting Short positions at serious risk.
3. Avantis (AVNT)
Although AVNT does not carry liquidation potential in the billions like Ethereum or Solana, its popularity places it on this list. According to CoinMarketCap Trending, Avantis currently tops market attention.
Interest in AVNT stems from its simultaneous listing on three major exchanges: Upbit, Bithumb, and Binance. Its price has surged more than 600% in September.
Derivatives traders continue to bet on further upside, as shown by the dominance of potential Long liquidations.
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The liquidation map shows that if AVNT corrects to $1, roughly $60 million in Long positions could be liquidated. Conversely, if AVNT rebounds to $2.6, over $21 million in Short positions could be liquidated.
Early investors now sit on massive profits for an altcoin with such explosive gains. Many could take profits soon. On-chain data confirms that an AVNT whale took profits today with gains exceeding 700%. If this profit-taking spreads, Long positions face significant risk.
The market has entered the last week of September with massive liquidation losses. A recent BeInCrypto report highlighted several reasons for this outcome.
“In the past 24 hours, 387,148 traders were liquidated. The total liquidations reached $1.67 billion,” Coinglass reported.
These figures may remain elevated in the coming days as late-September volatility grows increasingly unpredictable.