One Ethereum whale avoided liquidation of a short position of 70,000 ETH with a win rate of 75% over 4 trades by quickly adding margin.
At the time ETH peaked at $3,698.8 on OKX, this whale was liquidated at a threshold of 14,000 ETH when the price hit $3,699. Timely capital withdrawal from WhiteBIT helped raise the liquidation threshold to $3,724, limiting losses.
MAIN CONTENT
ETH whales have a win rate of 75% in 4 trades.
Successfully avoided complete liquidation thanks to timely margin supplementation.
The price of ETH once peaked at $3,698.8 on OKX during the event.
How did Ethereum whales avoid liquidation?
The Ethereum whale holding a short position of 70,000 ETH was partially liquidated with a volume of 14,000 ETH when the price of ETH approached $3,699 on OKX. However, thanks to rapid capital withdrawal from the WhiteBIT wallet to supplement margin, this whale raised the liquidation price to $3,724, avoiding complete liquidation.
The quick reaction skills and risk management strategies of whales show extensive experience in the cryptocurrency market, especially in margin trading with large volumes.
This illustrates how to improve financial leverage by increasing margin at the right time, helping to maintain positions during strong price fluctuations of ETH.
What was the price of ETH and the liquidation situation at the time of the event?
During the trading session at 2:00 AM (Vietnam Time), ETH reached a high of $3,698.8 on OKX, leading to significant liquidation of short positions by whales at the price of $3,699.
The sharp rise in ETH price in a short period put significant pressure on short positions. This event reflects the high volatility of the market and the associated risks when trading large volumes on margin exchanges.
The ability to raise capital and act quickly helps whales minimize losses in a complex market environment, demonstrating deep understanding of the mechanisms and liquidity flows on the Blockchain.
Timely margin supplementation allows for the maintenance of positions and limits losses during strong price fluctuations, which is key to long-term survival in the cryptocurrency margin trading market.
(Analysis by chain analyst Yu Jin, 7/8/2024)
Frequently Asked Questions
What is an Ethereum whale?
An Ethereum whale is an investor or wallet holding a large amount of ETH, significantly impacting the market due to the ability to trade large volumes.
Why is margin trading important in ETH transactions?
Margin helps maintain positions in leveraged trading, avoiding liquidation when the market fluctuates sharply, especially with large volumes.
What is liquidation in cryptocurrency trading?
Liquidation occurs when the margin position is insufficiently secured, forcing the exchange to automatically close the trade to limit financial risk.
How does the price of ETH $3,699 affect the whale's position?
This price is the partial liquidation threshold of the short position, causing losses but not complete liquidation due to timely margin supplementation.
How to avoid liquidation when trading on margin?
Effective risk management, adding margin when necessary, and closely monitoring price fluctuations help limit liquidations.
Source: https://tintucbitcoin.com/ca-voi-eth-loi-75-suyt-mat-trang/
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