If this joke is true, you won't see ETH at 18xx anymore
- Prediction for tonight is that interest rates will remain unchanged
- Short positions will be gradually unwound as we move into Q2, the market will recover strongly
DuongTai_News
--
🔥 I just researched a problem but it was unclear but now ChatGPT has answered
📍 This is the reason why eth is only around 189x-192x$ these days
Whales bought more than 1 billion USD of ETH but the price did not increase, maybe because they are hedging their position, meaning they bought ETH on the spot (immediate delivery) but at the same time placed short orders (short) on futures or options to keep the price from increasing sharply.
How whales "suppress the price" by hedging
Buy ETH on Spot
Whales buy real ETH on the spot exchange, increasing their holdings.
But they do not want the price to increase sharply immediately because FOMO will push the price up.
Sell ETH short on Futures
They place ETH short orders on derivatives exchanges (Binance, CME, OKX...) with the same or nearly the same amount of spot they bought.
This helps them control the price, avoid pumping too quickly, and at the same time make a profit if the price drops.
Use Options to Control Price Range
They can buy put options to insure if the price falls.
Or sell call options to earn premiums if the price does not increase sharply.
Create a depressed sentiment in the market
When whales collect but the price does not increase, the small fish get discouraged and sell because they think the market has no momentum.
Whales gradually collect cheaper ETH, then remove the hedge and push the price up.
Why do they do this?
✔ Limit FOMO early to collect goods slowly.
✔ Keep the price low to buy more without being followed by competitors.
✔ Create liquidity to push the price up later and dump at a higher level.
So, even if whales collect a lot of ETH, the price may not increase immediately. The important thing is when they remove the hedge, then you can see a strong increase. Are you following ETH for short-term trading or long-term investment?
📍 This is the reason why eth is only around 189x-192x$ these days
Whales bought more than 1 billion USD of ETH but the price did not increase, maybe because they are hedging their position, meaning they bought ETH on the spot (immediate delivery) but at the same time placed short orders (short) on futures or options to keep the price from increasing sharply.
How whales "suppress the price" by hedging
Buy ETH on Spot
Whales buy real ETH on the spot exchange, increasing their holdings.
But they do not want the price to increase sharply immediately because FOMO will push the price up.
Sell ETH short on Futures
They place ETH short orders on derivatives exchanges (Binance, CME, OKX...) with the same or nearly the same amount of spot they bought.
This helps them control the price, avoid pumping too quickly, and at the same time make a profit if the price drops.
Use Options to Control Price Range
They can buy put options to insure if the price falls.
Or sell call options to earn premiums if the price does not increase sharply.
Create a depressed sentiment in the market
When whales collect but the price does not increase, the small fish get discouraged and sell because they think the market has no momentum.
Whales gradually collect cheaper ETH, then remove the hedge and push the price up.
Why do they do this?
✔ Limit FOMO early to collect goods slowly.
✔ Keep the price low to buy more without being followed by competitors.
✔ Create liquidity to push the price up later and dump at a higher level.
So, even if whales collect a lot of ETH, the price may not increase immediately. The important thing is when they remove the hedge, then you can see a strong increase. Are you following ETH for short-term trading or long-term investment?
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
194
0