Derivatives data flag liquidation risks for ETH, BCH and PEPE in early January

Beincrypto reports that derivatives data show looming liquidation risks for Ethereum, Bitcoin Cash and PEPE as altcoins rebound in the first week of January. For Ethereum, on-chain indicators are bullish: new holder counts have surged, the staking entry queue has surpassed the exit queue, and transactions are at decade highs.

Traders have increased capital and leverage on long positions, and CryptoQuant’s estimated leverage ratio has reached an all-time high. The report says a drop to the $2,800 zone could push potential long liquidations above $5.8 billion. Bitcoin Cash has drawn renewed attention after veteran investor Peter Brandt suggested it is approaching the $650 resistance level.

BeInCrypto also noted bullish factors supporting upside, but Coinglass shows BCH open interest at a record $980 million; historically, open interest above $600 million has preceded sharp, prolonged corrections. The piece warns that a fall to $570 this week could see cumulative long liquidations exceed $80 million.

Key Topics

Crypto, Ethereum, Bitcoin Cash, Pepe, Peter Brandt, Coinglass