Altcoins at Risk: Ethereum, Solana, and Zcash Face Liquidation Threats

As November progresses, the total altcoin market cap has slipped below $1 trillion. This decline presents a risk of volatility and large-scale liquidations for several altcoins.

1. Ethereum (ETH)

Ethereum's market shows an imbalance in potential liquidation volumes between Long and Short positions. Traders are leaning towards Short positions, which could lead to significant losses if ETH rebounds. Should ETH rise above $3,500, over $3 billion in Short positions could be liquidated, while a drop below $2,700 would see Long liquidations of about $1.2 billion. Despite recent outflows from ETH ETFs and sales by crypto figures, ETH's technical analysis suggests a possible recovery from its support zone around $3,100.

2. Solana (SOL)

Solana's liquidation map also shows a Short position dominance. While SOL's price drop below $150 led traders to anticipate further declines, recent ETF data indicates strong demand. The SOL ETF recorded net inflows of over $46 million last week, suggesting potential for a rebound. If SOL reaches $156, Short liquidations might approach $800 million. Conversely, a drop to $120 could result in Long liquidations of around $350 million.

3. Zcash (ZEC)

In contrast to ETH and SOL, Zcash faces a higher risk of Long position liquidations. Although ZEC has been rejected near the $700 mark, its total open interest reached a record high of $1.38 billion, indicating significant leveraged exposure. A drop below $600 could lead to Long liquidations exceeding $123 million. This scenario underscores the importance of strategic trading plans to mitigate risks.