Ethereum trader earns $16M as ETH price falls to $3K
A savvy cryptocurrency trader has made nearly $16 million by capitalizing on Ether’s price decline.
The trader generated $15.7 million worth of unrealized profit on a leveraged Ether
$3,057
short position, which involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price and then repurchasing it once the price falls — a strategy used by traders to bet on the price decline of an asset
The trader opened the 50x leveraged short position when ETH traded at $3,388, with a liquidation threshold of $4,645, Hypurrscan data shows
The trader earned an additional $2.3 million worth of funding fees on their leveraged position.
While leveraged trading can potentially increase returns, it can significantly amplify downside risks and lead to the loss of the initial investment
In January 2024, a pseudonymous trader lost over $161,000 worth of funds in a single trade after being liquidated on a leveraged position, illustrating the risks of leveraged trading.
