#ETH4500Next? #BinanceAlphaAlert

In Brief

Ethereum long positions face liquidation risks exceeding $7 billion if the price drops to $3600 amidst market imbalance and diminishing inflows.

Investors in Athena could lose $70 million if the price falls to $0.70, with whales accumulating but likely taking profits near $0.90.

Short sellers in XRP face the risk of losing $500 million if the price rises to $3.50, despite bearish trader sentiment after the release of one billion XRP.

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Three altcoins at risk of major liquidation in the second week of August

As the second week of August begins, the total market capitalization of cryptocurrencies exceeded $4 trillion, officially marking its all-time high. With improved trading sentiment, positive expectations deepen the imbalance between buy and sell positions.

As a result, some altcoins may face significant liquidations this week if prices move against the expectations of short-term leveraged traders.

1. Ethereum (ETH)

The Ethereum liquidation map over the past seven days shows a significant imbalance between accumulated liquidation volumes on the buy and sell sides. Traders continue to allocate their capital and leverage for bets on Ethereum's continued rise after surpassing the $4,300 level.

As a result, some altcoins may face significant liquidations this week if prices move against the expectations of short-term leveraged traders.

1. Ethereum (ETH)

The Ethereum liquidation map over the past seven days shows a significant imbalance between accumulated liquidation volumes on the buy and sell sides. Traders continue to allocate their capital and leverage for bets on Ethereum's continued rise after surpassing the $4,300 level.

Coinglass data indicates that long-term traders could lose more than $5 billion if the price of ETH drops by 7% this week and falls below $4000. Conversely, a 7% rise to $4600 would liquidate $2 billion from short-term traders.

ETH Exchange Liquidation Map. Source: CoinglassETH Exchange Liquidation Map. Source: Coinglass

Some traders fear that liquidity is primarily flowing into Ethereum, while other altcoins are not experiencing similar inflows. They believe that Ethereum's rise may lack sustainability if buying pressure diminishes, potentially leading to a sharp decline and long-term liquidation of up to $7 billion.

If the price of Ethereum falls to $3600, over $7 billion in long positions will be liquidated - representing a very attractive source of liquidity for exchanges... And as liquidity has primarily flowed into Ethereum while other altcoins remained inactive, this suggests that Ethereum may be in a position to balance the total market value of cryptocurrencies in response to potential Bitcoin dominance moves, as investor Marzil said.

2. Athena (ENA)

Athena (ENA) was one of the most traded altcoins in August. Thanks to the passing of the GENIUS law on July 18, the value of the stablecoin Athena USDe reached $10 billion, making it the third largest stablecoin after USDT and USDC.

Positive sentiment towards ENA has driven its price from $0.50 to over $0.80 in August. A recent report from BeInCrypto showed that whales are still accumulating ENA, and the liquidation map reflects traders' expectations for more short-term gains.

The liquidation map published by ENA over the past 7 days shows that the total accumulated liquidation volume of long traders far exceeds that of short traders.

ENA Exchange Liquidation Map. Source: CoinglassENA Exchange Liquidation Map. Source: Coinglass

If the price of ENA falls to the psychological support level of $0.70 this week, long-term traders could face losses exceeding $70 million. On the other hand, if the price of ENA rises to $0.90, short-term traders will only lose $16.5 million.

Some traders believe that the price of ENA could continue to rise towards $1.50. However, they warn that the token may face profit-taking pressure in the $0.80-$0.90 range.

3. XRP

While many altcoins show imbalances in their liquidation maps leaning towards bullish expectations from short-term traders, XRP presents a different picture.

A recent report from BeInCrypto revealed that Ripple released one billion XRP, raising concerns about bearish pressure. Technical indicators also suggest that sellers may soon dominate the market.

Perhaps for these reasons, the XRP liquidation map over the past 7 days shows that traders are putting more money on a bearish scenario.

If XRP moves against these bearish bets, short sellers could suffer significant losses this week.

Specifically, if the price of XRP rises by 8% to reach $3.50, approximately $500 million in short positions will be liquidated. Conversely, if the price of XRP drops by 8% to $3.00, long positions will face liquidation worth approximately $370 million.

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