A sudden decline in the price of the cryptocurrency Ether (ETH) led to the liquidation of an investor’s position. ETH’s price fell to approximately $3,033 within an hour, resulting in the liquidation of Huang Licheng’s long position. The loss amounted to about $9.8 million. The position size was around $7.73 million with an average entry price of $3,190, causing an unrealized loss of $2.9 million, or 94%. The liquidation price was near $3,025, leaving only $270,000 remaining in the account. The same investor had faced another liquidation the previous evening around 7 PM when ETH was priced at about $3,050, incurring a loss of roughly $1.1 million and subsequently depositing a small margin of $12,000. Ether, the popular cryptocurrency of the Ethereum network, is known for its volatility in the global market, often experiencing sharp fluctuations. Liquidation occurs when a position’s value falls below a set threshold and is automatically closed to prevent further losses, posing significant risks especially for those trading on margin or leverage. This market volatility presents ongoing challenges for investors, as rapid price changes can quickly impact their capital. The risk of similar liquidations will persist until ETH’s price stabilizes or investors manage their positions more effectively.
Source: binance
