Imagine this: Ethereum ($ETH) surges to its All-Time High of $4891.70, and suddenly, 150,000 traders jump in to short it—each with just $10, but using 50x leverage. What kind of price shock could this trigger?
Let’s break it down mathematically 👇
🔢 Total Shorting Power:
Each trader controls:
`
$10 × 50 = $500
`
So, the collective shorting capital becomes:
`
150,000 × $500 = $75,000,000
`
📉 Shorting Pressure Explained:
Shorting means betting against the asset. If ETH starts dipping, these positions become profitable—fueling more shorts and possibly triggering a domino effect of selling.
🧠 Market Cap vs. Short Volume:
At ATH, Ethereum’s estimated market cap was:
`
$4891.70 × 120,000,000 (circulating supply) ≈ $587 Billion
`
Now, let’s estimate the price impact:
`
Price Impact = (Short Volume / Market Cap) × Price
= (75,000,000 / 587,000,000,000) × 4891.70 ≈ $0.63
`
📊 Final Price Projection:
If this shorting wave hits, ETH could initially drop by $0.63, landing around:
`
$4891.70 - $0.63 = $4891.07
`
But wait—this is just a basic mathematical estimate. In reality, factors like liquidity, whale moves, panic selling, and liquidation cascades could push ETH far lower. In extreme scenarios, the price could even plunge to $2100 or below.
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📌 Moral of the Story:
Leverage is powerful—but when thousands use it simultaneously, it can shake even the strongest assets. Stay sharp, stay safe, and alw
ays analyze the market beyond the surface.
#ETH4500Next? #BinanceAlphaAlert