- A major investor opened a $138.75M long position on ETH, sparking speculation about insider knowledge or a calculated risk.
- ETH investors face significant financial risks because the designated liquidation price stands at $1,854.4.
- Multiple liquidations worth more than $330M happened as ETH price dropped below $3,000.
A major cryptocurrency investor has taken a significant risk by opening a sizable long position on Ethereum ($ETH). The trade, which has drawn considerable attention from market watchers, has rapidly grown to 73,076 $ETH, equivalent to approximately $138.75 million. With an unrealized profit exceeding $1 million in just 10 minutes, speculation has arisen about whether the investor is operating with insider knowledge or simply making a high-stakes gamble.
Source: (X)
Ethereum Faces Risk as Price Declines
Market trends combined with the investor’s entry price point suggest Ethereum holds great promise regarding its future price performance. The position holds major risks because the set liquidation price stands at $1,854.4. A market price decline to $1,854.4 would trigger the liquidation of the entire investment position thus resulting in major financial losses.
Currently, Ethereum is trading at $1,895.13 with a price decline of 1.44% showing negative momentum in the market.The market cap has declined 1.23% to trade at $228.71B with the volume at $25.83B.
Ethereum’s Volatile Ride: Leverage Liquidations and Market Instability
According to data from Coingass,the ETH Total Liquidations Chart presents ETH price exhibits a significant upward trajectory from mid-September to late November, peaking around $4,000. The ETH value experienced a quick downward movement from January’s start until it reached $2,000 during early March
Source: Coinglass
The price data confirms that market conditions started and ended with bullish dominance before going through bearish forces leading to multiple price corrections. Long liquidations exceeding$330 million appeared as a big green spike when ETH prices dropped below $3,000.
The chart demonstrates rising market volatility caused by leverage liquidations in the ETH market. The outcome of this price depends on Ethereum’s current market trends together with developments in the overall crypto sector.
