The cryptocurrency market experienced a significant deleveraging event on November 3rd, 2025, wiping out hundreds of millions in leveraged derivatives positions. This has left several major altcoins, particularly Ethereum, poised for potential short squeezes that could dramatically shift market dynamics.
A Wave of Forced Selling
The market began November under pressure, with over $84 million in long positions liquidated in a 24-hour period leading into November 3rd. This sell-off was part of a broader trend of caution, as the market grappled with macroeconomic uncertainties. The brunt of the pain was felt by traders betting on higher prices, with long liquidations for Bitcoin and Ethereum accounting for 78.58% and 74.21% of their respective totals. This event underscores the inherent risks of leveraged trading, where positions are automatically closed by exchanges when traders lack sufficient funds to cover losses.
Altcoins Primed for a Squeeze
The current market structure has created a tinderbox scenario for several altcoins, where a price increase could force a cascade of buying.
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Ethereum (ETH): The most significant risk is concentrated in Ethereum. Data from liquidation maps indicates that if ETH were to rebound to $4,000, it could trigger over $4.2 billion in short liquidations. A stronger move toward $4,300 could push that figure close to a staggering $8 billion. This potential for a massive short squeeze exists alongside strong network fundamentals, including record-high application revenue.
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Aster (ASTER): This altcoin also shows a pronounced imbalance. A rally to the $1.40 level could liquidate approximately $44 million in short positions. The risk is amplified by social media influence, as a token purchase disclosed by Binance founder Changpeng “CZ” Zhao has previously triggered significant price volatility.
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Dash (DASH): Riding a renewed privacy coin narrative, Dash has seen traders increase their short exposure. A price climb to $105 could wipe out over $13 million in these bearish bets, with some community analysts projecting even higher targets.
Navigating a High-Stakes Environment
For traders and project treasuries, this environment demands heightened risk management. The high leverage in perpetual futures markets, combined with lower liquidity in some altcoin order books, creates a system vulnerable to liquidation cascades. A sharp price movement in either direction can be exacerbated by a domino effect of forced selling or buying.
The days ahead will be critical. The market’s direction will likely hinge on whether key resistance levels, like $4,300 for ETH, are tested. Such a move could quickly reverse the current market orientation, turning a cautious correction into a violent short squeeze.
