Risk Exposure: The ETH long positions of whales have faced partial liquidation, indicating that even large investors with substantial financial strength are exposed to significant risks in the cryptocurrency market. The price fluctuations in the cryptocurrency market are severe, and a slight misstep can trigger the liquidation mechanism, leading to a decrease in the value of investors' assets. This highlights the high-risk nature of cryptocurrency trading, particularly when using leverage, which further amplifies the risks.
Market Volatility Impact: This liquidation is likely due to unfavorable fluctuations in the price of Ethereum. The sudden price drop caused the value of the whales' long positions to decline, and when the liquidation conditions were met, forced liquidation occurred. This also reflects the uncertainty in the market; even investors who are optimistic about Ethereum in the long term find it challenging to fully predict short-term price movements.
