What Risks Could Ethereum Short Sellers Face This Week?
The post What Risks Could Ethereum Short Sellers Face This Week? appeared on BitcoinEthereumNews.com.
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. 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) 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. 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. ETH Exchange Liquidation Map. Source: Coinglass 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. 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. Given these dynamics, short sellers may need to reassess their leverage levels to mitigate the risk of sudden price reversals. 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. However, this positioning increases the risk of liquidation if BNB…
Filed under: News - @ February 23, 2026 5:27 pm