Ethereum News Today: Margin Boost Staves Off ETH Liquidation Amid Turbulent Market

The "Buddy" Ethereum (ETH) long position, a high-profile leveraged trade, currently faces a liquidation price of $3,992, approximately $100 below the prevailing market level of $3,900 as of October 10 Full Source Title^[1]. On-chain analyst Yu Jin highlighted this threshold, noting that the position's proximity to liquidation is a critical near-term risk. To mitigate this, the trader recently closed the HYPE long position and added additional margin to the ETH long, effectively increasing the distance between the liquidation price and the current market rate Full Source Title^[2]. This strategic adjustment reduced the immediate likelihood of forced liquidation by altering the position's leverage profile.

Further context emerges from monitoring of "Brother Ma" Huang Licheng's portfolio, which includes the "Buddy" ETH long position. As of September 23, Huang's ETH long (15x leverage), HYPE, and PUMP (5x leverage) positions faced an unrealized loss exceeding $20 million. To prevent liquidation, he executed partial closures with stop-loss orders, underscoring the volatile environment and the fragility of leveraged positions . The margin top-up referenced in October 10 reports aligns with broader risk management practices amid heightened market turbulence, where cascading liquidations and whale activity amplify systemic risks.

The "Buddy" position's survival hinges on continued price stability and disciplined leverage management. Analysts emphasize that further sharp price declines could trigger a cascade of liquidations, particularly given the interconnectedness of leveraged positions and collateralized assets in centralized and decentralized ecosystems. Institutional short positions and external macroeconomic factors, such as U.S. monetary policy developments, also pose potential catalysts for volatility.