10 months ago
A trader’s large stake against Ethereum caused him to lose a large chunk of his $2 cardinal margin. Considering the steadfast and dependable increment of ETH prices implicit the past fewer weeks, much could beryllium astatine stake.
In a bid of screenshots shared connected July 3 connected Reddit, 1 trader connected GMX has been aggressively “shorting” Ethereum with precocious leverage, a determination that has seen the trader suffer hundreds of thousands successful USD. GMX is simply a fashionable decentralized concern (DeFi) protocol that allows users to commercialized perpetual futures contracts, including those of ETH, with up to 50x leverage.
Ethereum Prices Up 20% In 2 Weeks
Despite facing important losses from the forced liquidation of their shorts, the trader appears unfazed and continues to treble down, shorting with precocious leverage without concern.
Since mid-June 2023, Ethereum prices person been rising, expanding 20% astatine spot rates. Floating supra erstwhile liquidation levels astatine astir $1,900, the coin is present trading astatine astir $1,945.Although buyers were incapable to thrust up spot rates further, the bulls are inactive successful charge. The intelligence terms constituent of $2,000 is inactive the contiguous absorption level, on with the April 2023 highs astatine $2,100.
Sparked by cardinal activities and mostly assurance from the broader cryptocurrency community, Ethereum has been marching higher, tracking the show of Bitcoin. The nonstop correlation of prices versus the USD betwixt Bitcoin and Ethereum could person benefited bulls during the rally.
Comments from the United States Securities and Exchange Commission (SEC), alleging that immoderate of the autochthonal currencies of immoderate of Ethereum’s competitors, including Algorand, Cardano, and Solana, are unregistered securities could person provided tailwinds for ETH, cementing its positions arsenic a starring astute contracts platform.
The SEC’s representatives, particularly its chair, Gary Gensler, person remained non-committal successful readily classifying the presumption of ETH. Any clarification could boost prices oregon unit a sell-off depending connected the agency’s classification.
Trader’s Doubling Down connected ETH Shorts
Despite the dependable emergence of ETH implicit the past 2 weeks, the trader, records reveal, has been shorting ETH from erstwhile it was astatine astir $1,700 to spot rates. However, the trader began aggressively shorting ETH from June 26.
In total, the trader opened 2 positions. One with a leverage of 19X was for $12 million, portion the different with a leverage of 7X was for $1 million. As prices increased, the collateral representing $12 cardinal from the 19X leverage presumption was closed. This didn’t halt the trader from opening different position. According to his trading history, different abbreviated presumption with a halt astatine $1,999 was opened, with leverage of 30X.
Whether ETH prices volition emergence successful the coming weeks is yet to beryllium seen. All that’s evident is that the coin’s terms has been firm, defying sellers who person been progressive from mid-April done to the archetypal fractional of June. In the mean term, the $2,000 and $2,100 liquidation levels are captious terms points that could signifier ETH’s trajectory successful the 2nd fractional of 2023.
Feature representation from Canva, illustration from TradingView
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