A famous ETH whale that once achieved a 75% win rate had a short position of 70,000 ETH liquidated, leaving 25,000 ETH with a final liquidation price of $3,876/ETH.
With the loss of all profits from the last two short positions, this whale suffered a loss of approximately $8.14 million in principal. The use of multiple stop-loss orders only helped to reduce the position somewhat.
MAIN CONTENT
The ETH whale with a 75% win rate had a short position of 70,000 ETH liquidated.
The actual loss is approximately $8.14 million due to lost profits from the last two short positions.
Who is the ETH whale and how was his short position liquidated?
This ETH whale is known for a short trading win rate of up to 75%, demonstrating significant experience and success in the cryptocurrency market. However, his short position of up to 70,000 ETH was liquidated, showing the high risks of trading with leverage in a highly volatile market.
To minimize losses, he implemented multiple stop-loss orders but only retained about 25,000 ETH short remaining. This large liquidation volume shows that the whale suffered very heavy losses due to adverse price movements.
"Risk management remains a decisive factor for success or failure in large leveraged positions in the cryptocurrency market."
Yu Jin, ETH Whale trading expert, 2024
What is the liquidation price and financial loss of this ETH whale?
The final liquidation price is estimated at $3,876 per ETH, a price that triggered mass liquidation orders. Accordingly, the whale lost all profits from the last two short positions, totaling about $8.14 million in principal.
This loss of profit not only directly affects finances but also indicates a very high level of short-term volatility in cryptocurrencies, especially with long-term leveraged trading on Ethereum.
How can investors learn from this event?
An important lesson from the case of the ETH whale is that risk management must remain a priority, especially with enormous leveraged positions in the volatile cryptocurrency market.
Investors should use stop-loss orders wisely while avoiding putting all their assets into one large position. At the same time, they need to closely monitor price fluctuations and market trends to timely adjust strategies, minimizing financial losses.
Frequently Asked Questions
What is an ETH whale?
ETH whales are individuals or organizations that own a large amount of Ethereum, which can significantly affect market volatility.
Why was the short position liquidated?
A short position is liquidated when the market price moves against the prediction, causing the collateral to be insufficient to maintain the position, resulting in an automatic closure of the order to avoid further losses.
What is the effect of a stop-loss order in leveraged trading?
A stop-loss order helps mitigate risk by automatically closing a position when the price reaches a limit set by the investor.
How to avoid losing money when trading cryptocurrencies with leverage?
Tight risk management, proper capital allocation, monitoring market volatility, and effectively using stop-loss orders are essential measures.
What impact does the liquidation of a large whale position have on the market?
Liquidating large positions can create strong selling pressure, causing short-term price volatility and affecting cryptocurrency market sentiment.
Source: https://tintucbitcoin.com/whale-eth-bi-thanh-ly-lon-giu-short/
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