A substantial leveraged trade initiated by AguilaTrades faces critical liquidation risk as Ethereum approaches specific price thresholds, showcasing the amplified dangers inherent in high-leverage cryptocurrency speculation.
AguilaTrades currently holds an open 15x leveraged short position on Ethereum, targeting significant downside movement. This position involves 30,001 ETH, valued at approximately $128.45 million, and carries a liquidation price point at $4,383.66. Market movements pushing ETH towards $4,258 significantly increase liquidation pressure on the trade.
Extreme leverage magnifies both potential gains and losses. Traders utilizing strategies like AguilaTrades’ face the acute threat of swift, total liquidation due to even minor unfavorable price fluctuations, locking in substantial financial losses within minutes.
AguilaTrades has experienced this volatility firsthand previously. The trader incurred a loss of $1.86 million in less than ten minutes after closing another leveraged short position of 26,187 ETH, worth $112.35 million at the time.
AguilaTrades’ current approach includes a new potential move: a plan to execute a limit short order of 29,000 ETH within the price band of $4,200 to $4,240. This timing coincides with the emergence of known large liquidation zones in the underlying ETH market.