3 Altcoins Facing Major Liquidation Risks In The Final Week Of February

What Happened

Several altcoins are showing a severe imbalance between potential long and short liquidations this week. Such conditions often create an environment for large-scale liquidations.

1. Ethereum (ETH)

Short-term traders have reasons to justify their bearish positioning. A recent report by BeInCrypto revealed that Vitalik Buterin reduced his holdings by more than 8,800 ETH throughout February 2026. Meanwhile, Ethereum inflows to Binance have reached their highest level since November 2025.

Market Context

The final week of February has brought another wave of declines, reinforcing expectations among short-term traders that altcoin prices could fall further. However, this outlook carries growing risks. If prices approach strong demand zones, they could stage an unexpected rebound.

The seven-day liquidation map for Ethereum (ETH) shows that many traders are allocating capital and leverage to short positions, betting on continued downside through the end of the month.

Given these dynamics, short sellers may need to reassess their leverage levels to mitigate the risk of sudden price reversals.

Second, data from On-Chain Mind, a crypto analytics account, indicates that BNB is currently trading about 37% below its short-term holder realized price equivalent. Historically, this level has signaled meaningful undervaluation and has often preceded strong repricing moves.

“Right now it is trading about 37% below its short-term holder realised price equivalent, a level that historically signals meaningful undervaluation. BNB has a history of sharp repricings from zones like this,” On-Chain Mind reported.

Bitcoin Cash stands out as one of the few altcoins that has not behaved as if it were in a broader crypto bear market.

Why It Matters

As a result, cumulative potential liquidations on the short side now dominate. If ETH unexpectedly rebounds to $2,000 this week, short positions could face up to $2 billion in liquidations.

If ETH climbs further to $2,160, short liquidations could reach $3.6 billion.

However, this positioning increases the risk of liquidation if BNB rebounds.

If BNB climbs to $640 this week, potential short liquidations could reach $35 million. A further rally to $680 could push short liquidations above $60 million.

First, BNB is approaching its long-term support trendline established in 2024. Shorting near strong support levels often carries elevated risk.

Short sellers who grow overly confident in BNB’s downtrend could face significant losses if momentum shifts.

Details

However, several bullish indicators are also emerging, increasing the likelihood of a surprise recovery.

ETH ETF flows have turned positive after four consecutive weeks of outflows. In addition, data from CryptoQuant shows that inflows into ETH accumulation addresses over the past six months have reached the most active period in history.

2. Binance Coin (BNB)

Like ETH, Binance Coin (BNB) has faced persistent selling pressure. Six consecutive red weekly candles with no clear signs of recovery have encouraged traders to maintain dominant short positions.

Why should short traders remain cautious?

3. Bitcoin Cash (BCH)

Nevertheless, short-term traders have turned increasingly bearish on BCH in the final week of February. Their positioning has pushed potential short liquidations well above those on the long side.

Data from Bitinfocharts shows that whales have actively accumulated BCH in recent months. One whale address accumulated 400,000 BCH within two months, becoming the network’s third-largest holder.

In addition, a recent report by BeInCrypto stated that the average transaction value on the BCH network surged to over $2 million, nearly 100 times higher than last year.