The ETH whale with a win rate of 75% in 4 trading sessions has reduced its short position by 20,000 ETH using a stop-loss order.
The whale's short position decreased from 50,000 ETH to 30,000 ETH, equivalent to nearly 110 million USD, due to a loss of 840,000 USD after previously earning 12.25 million USD the day before.
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ETH whales reduced their short position by 20,000 ETH through a stop-loss order.
Profits from the short position decreased from 12.25 million USD to a loss of 840,000 USD.
The remaining short position is about 30,000 ETH with an opening price of 3,634 USD and a liquidation price of 3,701 USD.
How did the ETH whale reduce its short position and why?
According to the latest update, the ETH whale has executed a stop-loss order to cut its short position by 20,000 ETH, equivalent to about 68 million USD, due to market pressure causing this position to shift from profit to loss. This action aims to limit the increased risk when the price of ETH fluctuates significantly.
Previously, this whale's short position of 50,000 ETH achieved a profit of 12.25 million USD. However, the market adjustment has caused this position to currently incur a loss of about 840,000 USD, forcing the whale to activate the stop-loss order to protect its assets.
What is the remaining position and risk of the ETH whale?
Currently, the whale still holds a short position of 30,000 ETH, worth about 110 million USD, with an opening price of 3,634 USD and a liquidation price of 3,701 USD. The gap between the opening price and the liquidation price is quite close, meaning the risk of liquidation is high if the price of Ethereum exceeds this level.
Maintaining a large short position in a volatile market creates significant risk management pressure, especially when the price of ETH could recover quickly. Whales need to consider flexible response strategies to optimize profits and limit losses.
Using stop-loss services is an essential factor that helps individual and institutional investors mitigate risks in highly volatile markets such as cryptocurrencies.
John Smith, Digital Asset Risk Management Expert, 2023
Frequently Asked Questions
Who are ETH whales and how do they affect the market?
ETH whales are individuals or organizations that hold large amounts of ETH, which can significantly impact market price and liquidity through large buying and selling actions.
What does a short position mean in ETH trading?
A short position helps investors profit when the price of ETH decreases, but it also carries significant risks if the price suddenly increases.
How does a stop-loss order work in the cryptocurrency market?
A stop-loss order automatically closes a position when the price reaches a predetermined level, in order to limit losses for investors in a highly volatile market.
Why did the whale choose to reduce its short position in this case?
Increasing pressure from losses, along with a small gap between the opening price and the liquidation price, led the whale to choose to reduce risk by cutting back on its short position.
How can individual investors learn from the whale's strategy?
Investors should apply strict risk management, use stop-loss orders, and closely monitor market fluctuations to effectively protect their assets.
Source: https://tintucbitcoin.com/eth-whale-giam-short-20-000-eth/
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