ETH Price Drop? Letโs Do the Math! ๐จ
Imagine this โ Ethereum hits its All Time High of $4,891.70 ๐๏ธ.
But thenโฆ the dump begins ๐.
$ETH
ETH
4,325.97
+1.8%
Now, 150,000 traders decide to short ETH.
Each puts in $10 but uses 50x leverage โก โ meaning they control $500 each!
๐ฐ Total short power =
150,000 ร $500 = $75,000,000 in short positions!
But what does that mean for ETHโs price? ๐ค
ETHโs market cap at ATH was around $587 billion.
So, $75M of short pressure is just a tiny fraction โ about a $0.63 drop mathematically.
๐ Calculated New Price:
$4,891.70 โ $0.63 โ $4,891.07.
Sounds small, right? BUTโฆ in real markets, things arenโt that simple ๐.
Short squeezes, panic selling, whale moves ๐, and cascading liquidations can turn that into a massive dump โ even down to $2,100! ๐ฅ
โ ๏ธ Moral of the story: Numbers give you an ideaโฆ but market emotions write the drama!
#Ethereum #DeFi #CryptoMarket #BullRun #BearMarket