The crypto market has just witnessed a record-breaking liquidation event exceeding $19 billion, with most liquidated positions being longs. After this shock, derivatives traders have turned more cautious. However, a few altcoins appear to be defying that trend.

Some altcoins, such as BNB and ZEC, are still heavily FOMO’d by investors, while many traders remain uncertain about Ethereum’s (ETH) next direction.

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1. Ethereum (ETH)

The total open interest in ETH dropped from $63 billion to $48 billion last week, showing that traders have reduced short-term leveraged positions in the market’s leading altcoin.

However, short-term bearish sentiment still dominates ETH traders. This imbalance is visible on the liquidation map, where short liquidations (on the right side) slightly exceed long liquidations.

Analysts recently outlined several reasons supporting a V-shaped recovery scenario for ETH. Large investors have been accumulating ETH as its price dips near $3,500, and Trump’s latest statements have calmed market sentiment.

“I wouldn’t be surprised if we see a V-shape recovery in the next 1–2 weeks,” investor Mnpunk.eth, said.

If ETH continues to recover and rallies toward $4,600 this week, potential short liquidations could reach $5.6 billion. Conversely,

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Author: Nhat Hoang