Ethereum has been on a bearish trend for the past six weeks, but while many investors are suffering from the dips, one skilled trader has made nearly $16 million profit by betting against the price of ETH.
Now, discover how an experienced trader turned Ethereum's devaluation into a fortune!
Using a 50x leveraged short position, the trader opened his trade when $ETH was trading at $3,388, with a liquidation limit of $4,645. With this strategy, he was able to accumulate $15.7 million in unrealized profits, in addition to an additional $2.3 million in financing fees.
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Opportunity or high risk?
Leveraged trading can magnify gains, but it also exposes investors to enormous risks. In January 2024, a trader lost $161,000 in a single trade after being liquidated. This type of strategy requires advanced knowledge and risk control.
Can Ethereum reverse this trend?
$ETH is currently trying to hold above the psychological support of $3,000, but experts point out that the network needs more adoption to regain strength. According to Nansen analyst Aurelie Barthere, other Layer 1 blockchains are catching up to Ethereum in terms of applications, fees, and staking.
Trader Cas Abbé believes that for $ETH to resume its appreciation, it needs to break through $3,400 and target $4,000. In addition, there is a crucial resistance point at $3,240, which, if overcome, could trigger more than $1 billion in liquidations of leveraged short positions.
Fonte: Cointelegraph
And you, what do you think?
Will Ethereum be able to reverse its decline soon? Leave your comment and share this post with anyone who wants to understand more about the crypto market! 💡
Disclaimer: This content is not investment advice. Please do your own research and be fully informed before making any decisions.
