The ETH whale closed a short position of 50,000 ETH with a loss of 710,000 USD after the ETH price exceeded the opening price.
After opening a short position on June 11, the ETH whale recorded a floating profit of up to 22.83 million USD when the ETH price dropped to 2,200 USD, but when the price rose back and surpassed 2,725 USD, the position was closed with a loss of nearly 710,000 USD.
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The ETH whale opened a short position of 50,000 ETH on June 11 at a price of about 2,725 USD.
The short position was closed when the ETH price rose above 2,725 USD, resulting in a loss of 710,000 USD.
How did the ETH whale open the short position and what was the outcome?
According to observations from on-chain analyst Yu Jin, the Ethereum whale opened a short position of 50,000 ETH on June 11 at an opening price around 2,725 USD. With deep experience and knowledge of the cryptocurrency market, the whale persisted in holding the position until the market experienced strong fluctuations.
During the period when the ETH price dropped to 2,200 USD on June 23, this position once generated a floating profit of up to 22.83 million USD. This is evidence of an effective short strategy when predicting the downward trend correctly.
Why did the ETH whale close the position with a loss of 710,000 USD?
The short position was closed when the ETH price rose above 2,725 USD, specifically at 2,740 USD, negating the advantage of this short position. Closing the order when the price exceeds the opening cost is a decision based on effective risk management in the context of significant price volatility.
"Timing the market is always important for large investors. Setting reasonable stop-losses helps preserve capital against unforeseen fluctuations."
Yu Jin, On-chain analyst, 10/7/2024
What does the ETH whale's short trading strategy mean for investors?
This case reflects the risky nature and strong volatility of the cryptocurrency market. Although there is potential for large profits when predicting the trend correctly, managing risk with short orders is still very important to avoid large losses. Individual investors can learn the lesson of closely monitoring prices and setting reasonable stop-loss points.
"The cryptocurrency market is always full of unpredictable fluctuations, so a flexible strategy and serious risk management are the keys to success."
Nguyen Thanh Binh, CEO of the cryptocurrency investment fund, 2024
Profit and Loss Comparison Table of Short Position
Time ETH Price (USD) Position Status Profit/Loss (USD) June 11 2,725 Short position 50,000 ETH 0 June 23 2,200 Floating profit 22,830,000 July 10 2,740 Position closed, loss -710,000
Frequently Asked Questions
Who is the ETH whale? The ETH whale is a large investor who owns a massive amount of ETH that strongly influences the market, usually having deep knowledge and trading experience. Why do whales open short positions? Shorting allows whales to profit from a downward trend by selling ETH at a high price and then buying it back at a lower price. What does floating profit mean? Floating profit is a temporary profit on paper when the price moves favorably but the position has not yet been closed. Why close the position when it is profitable? Closing the position helps protect the profit against the risk of adverse price declines, or limits losses if the market fluctuates unfavorably. Does closing losing positions affect the market? Large trades in the cryptocurrency market can create temporary price fluctuations, but the overall impact depends on the liquidity and trading volume of the market.
Source: https://tintucbitcoin.com/ca-voi-eth-dong-vi-the-lo-lon/
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