A famous ETH whale with a 75% win rate was just liquidated on a short position of 70,000 ETH at a price of $3,876/ETH, leaving 25,000 ETH yet to be closed. Total estimated loss is $8.14 million, due to losing all profits from two previous short orders.
Despite using multiple stop-loss orders to minimize risk, the whale still suffered heavy losses due to unfavorable ETH price volatility. This event once again shows: high leverage = high risk, especially in highly volatile markets like crypto.
"Risk management is still a crucial factor when trading with high leverage."
– Yu Jin, ETH Whale trading expert
Investment lesson learned:
Always set reasonable stop-loss orders, avoid all-in on a position.
Allocate capital and leverage appropriately according to market volatility.
Closely monitor price fluctuations to adjust strategies in a timely manner.
Understanding some concepts:
ETH Whale: An investor holding a large amount of ETH, able to influence the market.
Liquidation of a short position: Occurs when the price of ETH rises contrary to expectations, the margin asset is insufficient, and the exchange automatically closes the order to limit losses.
Stop-loss: An automatic loss-cutting tool when the price hits a predetermined level, helping to limit risk.
Market impact:
Liquidating large volumes can create short-term selling pressure and significantly affect investor sentiment. This is a clear reminder of the importance of risk control in leveraged crypto trading.
#Ethereum #ETH #USDT #Trading #CRYPTO