The second week of September saw the Altcoin Season Index reach its highest level in five years. Positive sentiment pushed several altcoins to all-time highs and attracted massive open interest. However, this also came with the risk of large-scale liquidations.
The following altcoins show signs of extreme FOMO and face potential liquidation risks in the third week of September.
1. Ethereum (ETH)
By mid-September, Ethereum reserves reached a new peak of 4.9 million ETH worth $22.2 billion. This figure excludes the 6.7 million ETH held in Ethereum ETFs, valued at $46.3 billion.
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A recent BeInCrypto report highlighted on-chain data suggesting Ethereum’s price could reach $5,000 or higher. Derivatives traders appear to share that belief, increasing leverage and long positions. This means their losses will be greater if ETH moves against expectations.
The liquidation map shows that if ETH drops to $4,046 this week, more than $8.8 billion in long positions will be liquidated. Conversely, if ETH rises to $5,000 as many analysts predict, about $4.8 billion in short positions will be liquidated.
Are there reasons to expect ETH to decline? BeInCrypto’s latest analysis noted that Ethereum’s profitable supply recently hit 99.68%, a sign of potential profit-taking.
In addition, over 2.6 million ETH are now queued for unstaking. The initial trigger came from Kiln Finance, which unstaked to manage risks after issues tied to SwissBorg.
However, the unstaking queue has continued to grow as ETH’s price climbed, reflecting stronger demand for profit-taking.
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2. Binance Coin (BNB)
Binance Coin (BNB) reached an all-time high of $944 in September.
The rally followed news that Binance and Franklin Templeton announced a new partnership to develop blockchain and crypto solutions for institutional adoption.
Like ETH, BNB’s 7-day liquidation map shows an imbalance between long and short positions. Long liquidations dominate, signaling that many traders are betting on continued gains.
If BNB falls to $818 this week, more than $189 million in long positions will be liquidated. On the other hand, if BNB climbs to $1,031, about $103 million in short positions will be wiped out.
What risks should traders consider for BNB longs? One warning sign comes from total open interest (OI).
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Data from Coinglass shows that as of September 14, BNB’s total OI hit $1.72 billion. In the current quarter, OI crossed $1.5 billion three times. Both the previous two instances triggered corrections of 7% to 15%.
If history repeats, the third surge could lead to losses for traders holding BNB longs.
3. MYX Finance (MYX)
MYX Finance (MYX) delivered one of the most controversial rallies of September. BeInCrypto’s data shows the token surged 450% in the past month.
However, MYX has faced skepticism, including accusations of Sybil attacks in its airdrops and fears of a collapse similar to Mantra (OM).
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The token has already dropped from its ATH of $18.9 to $10.9, a more than 40% decline. This pullback suggests that FOMO-driven sentiment has cooled.
As a result, derivatives traders are leaning toward short positions. The 7-day liquidation map shows shorts will face heavier losses if they are wrong.
If MYX recovers to $12.35, more than $19 million in short positions will be liquidated. If MYX falls to $8.79, over $12 million in long positions will be liquidated.
Some technical analysts expect a rebound, arguing that the $10–$11 range is a strong support zone where investors are likely to buy.
“Beautiful breakout by $MYX & strong bounce from crucial support area. High chance of a nice bounce. Targets 12, 13, 14, 15, 16,” trader BitcoinHabebe predicted.
BeInCrypto’s latest analysis also suggested that the current pullback is not a trend reversal but a temporary correction.
