3 Altcoins That Could Face Major Liquidation Risks During Christmas Week

Several altcoins face heightened liquidation risks during Christmas week 2026. Liquidation heatmaps show clear imbalances, while Open Interest has surged sharply.

Which altcoins are at risk, and which drivers should investors watch when holding Long or Short positions? The following analysis explains the details.

1. Ethereum (ETH)

The 7-day ETH liquidation heatmap indicates that potential Long liquidations far exceed short liquidations.

If ETH drops to the $2,660 zone during Christmas week, total Long liquidations could exceed $4 billion. In contrast, total Short liquidations could reach $1.65 billion if ETH rises to $3,370.

ETH Exchange Liquidation Map. Source: Coinglass

Factors Long traders should monitor to reduce risk:

• Arthur Hayes recently transferred 508.6 ETH (approximately $1.5 million) to Galaxy Digital. This move has fueled speculation that he may be reducing exposure to Ethereum.
• The Ethereum Coinbase Premium Index turned negative in the third week of December. If selling pressure from Coinbase intensifies, ETH prices could decline further in the coming days.
• ETH ETF outflows reached $643.9 million last week. This trend reflects broader selling pressure across the market.

If these factors strengthen, they could trigger a sharp bearish scenario. Such a move may lead to large-scale liquidations among Long traders.

2. Midnight (NIGHT)

Midnight (NIGHT) has recently attracted significant trader attention. Open Interest surged from $15 million to over $90 million within two weeks.

Liquidation data suggests traders broadly expect NIGHT prices to keep rising. As a result, traders betting on bullish scenarios may face heavier losses due to increased capital and leverage usage.

NIGHT Exchange Liquidation Map. Source: Coinglass

Cardanians, a company operating Cardano stake pools, reported that NIGHT now records daily trading volume of $6.8 billion. This figure exceeds the combined volumes of SOL, XRP, and BNB. Despite the surge in volume, NIGHT posted its first red daily candle today after seven consecutive days of gains. This signals growing selling pressure.

In addition, investor Plutus, citing DexHunter data, stated that 100% of current NIGHT holders who bought on the market are in profit. These holders may take profits at any time.