An Ethereum whale currently holds a 20,000 ETH short position with 20x leverage, generating a floating profit of approximately $1.12 million. The position was initiated at an entry price of $3,843 per ETH, with a liquidation threshold set at $3,999 should the market move against the trade.
This development follows a high-stakes pattern for the trader, who previously shorted 50,000 ETH earlier this year. While that position yielded a peak floating profit of $22.83 million, it was ultimately closed at a $710,000 loss following rapid upward price movements in Ethereum.
The use of 20x leverage significantly amplifies both potential gains and risks, requiring precise market timing to avert liquidation. Such large-scale leveraged positions can influence broader market dynamics and underscore the critical need for sophisticated risk management strategies in cryptocurrency trading.