A significant leveraged short position on Ethereum (ETH) faces potential liquidation as the cryptocurrency’s price approaches critical levels. ETH recently peaked at $2,880, moving closer to the liquidation threshold for a substantial bearish bet.
The position, holding 40,000 ETH, carries a nominal value of $111 million and is leveraged 15 times. Its liquidation price is set at $2,938. Initiated at an average entry price of $2,793, the position currently shows an unrealized profit of approximately $670,000.
This precarious situation highlights the inherent volatility and amplified risks associated with leveraged trading in the cryptocurrency derivatives market. The proximity of the current ETH price to the liquidation point underscores the potential for rapid, large-scale liquidations during significant price movements.
Market analysts and participants are advised to closely monitor such large-scale positions, as their liquidation could contribute to increased market volatility and price swings.