3 Altcoins Facing Major Liquidation Risks in the Second Week of February

After three consecutive weeks of sharp declines, buying pressure has returned to the market. However, it remains insufficient to dispel investor skepticism fully. Several altcoins now show unique catalysts that could drive outsized recoveries this week, increasing liquidation risks. Ethereum (ETH), Dogecoin (DOGE), and Zcash (ZEC) could collectively trigger more than $3.1 billion in liquidations if traders fail to assess the following risks properly. 1. Ethereum (ETH) ETH’s 7-day liquidation map shows that potential liquidations from short positions outweigh those from long positions. Many traders appear to expect further downside. ETH has already fallen about 40% since mid-January. ETH Exchange Liquidation Map. Source: Coinglass This bearish expectation faces growing risk. On-chain data shows that only around 16 million ETH remain on exchanges. This level marks the lowest since 2024. Recent sell-offs have accelerated outflows from exchanges. Lower exchange balances reduce available supply. This dynamic can amplify price recoveries through supply–demand imbalances. Ethereum Exchange Reserve. Source: CryptoQuant. Additionally, more than 4 million ETH also sit in the staking queue. This further constrains the market’s liquid supply. If ETH’s recovery strengthens due to these factors, short sellers could face significant risk. If ETH rises to $2,370 this week, potential liquidations from short positions could reach $3 billion. 2. Dogecoin (DOGE) Dogecoin (DOGE) has fallen below $0.10. This level matches its 2024 price low. The 7-day liquidation map shows potential short liquidations of up to $98 million if DOGE rebounds to $0.109 this week. DOGE Exchange Liquidation Map. Source: Coinglass Analysts argue that such a scenario remains plausible given both short- and long-term structures. In the short term, trader Trader Tardigrade points to a Bull Flag pattern. This setup suggests DOGE could move toward $0.12 this week. $Doge/4-hour#Dogecoin is maintaining its Bull Fla...