Whale Adds 10,000 ETH to Short Position at $2,828 Liquidation Price

A significant market participant, commonly referred to as a "whale," has recently amplified their short position in Ethereum (ETH) by an additional 10,000 ETH. This move comes with a liquidation price set at $2,828 per ETH, indicating the whale's confidence in the downward trajectory of the cryptocurrency's value. The whale's current position is leveraged at 10x, with an entry price of $2,725 per ETH. This strategic maneuver suggests a bullish outlook on the short-term prospects of ETH, as the whale aims to capitalize on potential price declines.

The whale's decision to increase their short position by 10,000 ETH at the current market conditions reflects a calculated risk. The liquidation price of $2,828 per ETH serves as a critical threshold, beyond which the whale's position would be automatically closed to prevent further losses. This liquidation price is slightly above the current entry price of $2,725, providing a narrow margin for error. The whale's current floating profit stands at $13.71 million, underscoring the substantial financial stakes involved in this trading strategy.

The whale's previous actions provide additional context to their current move. On June 11, the whale opened a short position of 40,000 ETH. When ETH's price fell to $2,200 two days ago, the whale realized a profit of over $20 million. Instead of closing the position, the whale chose to add another 10,000 ETH short orders at $2,452 after the rebound this morning. This decision to maintain and even increase the short position despite the recent price rebound demonstrates the whale's conviction in the bearish outlook for ETH.

The whale's current position of 50,000 ETH, valued at $122 million, represents a significant portion of the overall market activity. The leveraged nature of the position, at 10x, amplifies both the potential gains and the risks involved. The whale's strategy of adding to their short position during a price rebound suggests a belief that the current upward movement is temporary and that ETH's price will eventually decline.

In summary, the whale's decision to add another 10,000 ETH to their short position, with a liquidation price of $2,828, highlights a strategic and calculated approach to trading ETH. The whale's actions, including the previous profitable trades and the current leveraged position, indicate a strong conviction in the bearish outlook for ETH. The liquidation price serves as a critical threshold, beyond which the whale's position would be automatically closed, underscoring the high-stakes nature of this trading strategy.