Market sentiment turned warmer at the beginning of January, and altcoins started to rebound, but whether this rally can continue is indeed concerning.

Ethereum on-chain activity has indeed increased, but the problem is that leverage has been piled on too aggressively—leverage ratios have hit record highs. Once the market reverses, if ETH drops to the $2800 level, it could trigger over $580 million in long liquidations, and the scene could be quite brutal.

Regarding Bitcoin Cash, investor Peter Brandt recently sounded the alarm. BCH is approaching the $650 resistance level, backed by a record $980 million in open interest. Historical experience tells us that such a situation is usually a prelude to a major correction. If it falls below $570, long liquidations alone could exceed $80 million.

As for PEPE, this meme coin has surged over 70% this year but now faces the risk of topping out. Based on the current technical pattern, it may retrace to around $0.00000613, with an estimated decline of about 10%. Profit-taking pressure and an imminent technical correction could push the risk of long liquidations beyond $15 million.

Overall, although this rebound looks lively, risks have quietly accumulated. Staying vigilant in the short term is very necessary.