Following a record-breaking liquidation, the crypto market is now closely watching Ethereum, BNB, and Zcash, three altcoins facing a high altcoins liquidation risk for the third week of October. Data from Coinglass shows that as traders become more cautious, these assets are exhibiting divergent trends that could trigger multimillion-dollar losses in leveraged positions. Market sentiment is currently divided between fear and optimism.
Ethereum’s open interest plummeted by 24%, although whales continue to buy near the $3,500 level. Despite this, a bearish bias prevails, and a recovery toward $4,600 could liquidate $5.6 billion in short positions. On the other hand, BNB reached a new all-time high, but FOMO from long traders increases the danger. A correction to $1,150 could wipe out over $300 million in long positions, indicating profit-taking from medium-term investors.
Opposing Signals in a Volatile Market
The current situation underscores the complexity of the digital economy, where each asset responds to different stimuli. Ethereum, for example, shows clear short-term distrust. The recent dip drastically reduced leverage, but the liquidation map still suggests that a majority is betting on lower prices. Nevertheless, accumulation by large investors and market-calming statements open the door for a potential V-shaped recovery.
In contrast, BNB is experiencing a moment of euphoria. The asset defied the general market trend by setting a new all-time high, which has encouraged traders to open long positions with aggressive leverage. This excessive optimism raises the risk of a sharp correction, especially as on-chain data shows that medium-term holders have begun selling their positions to secure profits.
Zcash Emerges with Unexpected Strength
Amid the general panic, Zcash (ZEC) has demonstrated remarkable strength. The privacy coin not only avoided significant losses but also reached a new all-time high. This behavior has piqued the interest of the community, aligning with the idea of a resurgence of privacy culture in blockchain. The liquidation map for ZEC appears balanced, with a similar number of long and short positions.
Open interest in ZEC has surpassed $300 million for the first time since 2020, indicating growing trader participation. If the upward trend continues and the price breaks above $315, over $20 million in short positions could be liquidated. However, a drop toward $227 would also put long positions in a tight spot. The divergence in sentiment across these three assets illustrates the growing complexity of market volatility as October unfolds, forcing investors to be more strategic.
