In less than a day, one trader lost over $3.24 million in the cryptocurrency market by opening a long position on Ethereum at the peak of a local rise.
This is reported by Business • Media
Significant Losses Due to Poor Market Entry
On December 10, the trader decided to enter a long position on Ethereum with a leverage of 7x when the asset price approached $3411. However, after opening the position, the ETH price began to decline, forcing the investor to partially close the position and realize a loss of $583,500.
“Currently, he holds 11,793 ETH in a position with an unrealized loss of $2.66 million.”
Despite the already realized losses, the trader still holds over 11,000 Ethereum, with his unrealized loss amounting to $2.66 million. If the price of Ethereum continues to fall and reaches $2929, the position will be liquidated.
Trends in Ethereum’s Price and Risks
At the time of publication, the price of Ethereum on the exchange is trading approximately $200 below the opening level of this risky position. This further increases the pressure on the trader, as a significant portion of his assets remains in the risk zone.
This situation vividly illustrates the risks of using high leverage in the volatile cryptocurrency market, especially when trading at local highs, where the market can quickly reverse in the opposite direction.
Earlier, there were reports of another record bet by traders on Ethereum at $6500, indicating a high level of speculative activity in the market.