A large-scale investor is facing potential asset liquidation this Thursday after an unsuccessful short position on Ethereum ETH/USD failed to yield the anticipated $4.25 million in gains.
Disclosure: 82% of retail CFD accounts lose money
Missed Opportunity on ETH Short Trade
According to data provided by HyperDash and reported by Lookonchain, the trader, previously known for successful ventures, employed a 15x leverage strategy on their ETH position. This amplified their exposure to a substantial $259.17 million, with an initial entry point of $3,618.30 per unit.
Unfortunately for the investor, the market trajectory shifted unexpectedly, negating the anticipated pullback. As of the latest update, the whale investor is currently experiencing a significant $6 million deficit on the trade and is nearing liquidation at $3,724, a mere 0.5% away from the critical threshold.
This unsuccessful wager has effectively erased the investor’s profits from their most recent three transactions, resulting in a current net unrealized loss of approximately $1.39 million.
See Also: Bitcoin At A Crossroads: Tom Lee Sees $1M, Polymarket Bets On A Dip
Tom Lee Predicts ETH Value Surge to $15,000 by Year’s End
Ethereum experienced an upward trend alongside a broader boost in risk appetite, fueled in part by Apple’s ambitious $100 billion investment initiative within the United States. The second most valuable cryptocurrency by market capitalization successfully surpassed the $3,700 resistance level overnight.
Moreover, Fundstrat co-founder, Tom Lee, has forecasted that ETH could potentially reach between $7,000 and $15,000 before the close of the year, with a possibility of hitting $20,000 in the long run, attributing this optimistic outlook to its increasing utility within the financial sector.
Price Action: Based on the latest data from Benzinga Pro, at the time of this report, ETH is currently trading at $3,705, reflecting an increase of 1.65% over the past 24 hours. The cryptocurrency has witnessed a significant surge of 44% over the previous month.
Benzinga Note: Utilizing leverage in cryptocurrency trading enables traders to control larger positions by using borrowed funds. While this strategy offers the potential for enhanced profits, it also dramatically elevates the risk of incurring substantial losses, particularly given the inherent volatility of the cryptocurrency market.
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Disclaimer: This material was created in part through automation by Benzinga Neuro, and subsequently reviewed and edited by Benzinga’s editorial team.