One of the traders in the cryptocurrency market suffered significant financial losses after opening a long position in Ethereum at the peak of its local rise. Within just 14 hours of this decision, his total losses exceeded $3.24 million.
This is reported by Finway
Details of Position Opening and Current Status
On December 10, the trader decided to invest in the rise of Ethereum’s price, using a 7x leverage. The purchase was made at approximately $3411 per coin. However, as soon as the price began to drop, the investor was forced to partially close his position, realizing a loss of $583,500. Despite this, a significant portion of the assets remains in an open trade.
At this moment, the trader still holds 11,793 ETH, and his unrealized loss amounts to $2.66 million. If the price of Ethereum reaches $2929, a forced liquidation of the position may occur.
“Currently, he holds 11,793 ETH in a position with an unrealized loss of $2.66 million.”
Ethereum Market Dynamics
As of the time of publication, the price of Ethereum is approximately $200 below the level at which the trader entered the position. Such market volatility highlights the risks of trading with leverage, especially during sharp price fluctuations.
Trader’s Position. Data: HyperDash.
ETH/USDT Chart on Binance Exchange. Data: TradingView.
Such cases demonstrate how risky margin trading in cryptocurrencies can be and how quickly investors can lose significant amounts due to market fluctuations.