He wasn’t liquidated, but still lost $1 million: he sold ETH all the way down to the bottom
Yesterday I asked: Would that 25x ETH long get liquidated?
The answer: No. But the outcome felt even worse than getting liquidated.
Yesterday morning, he was holding 19,575 ETH worth $50 million, at 25x leverage.
As ETH fell, he started selling. He sold a few hundred with every drop, and the faster it fell, the faster he sold.
By midnight, he had sold a total of 16,115 ETH, worth about $40 million.
His realized loss: $999,000. Not a single forced liquidation—he cut every position himself.
His final sale was at 2,410.6.
ETH’s low for this move: 2,410.1.
24 minutes later, he started buying back in.
The day before, he bought every dip. Yesterday, he sold every dip. His final sale landed right at the bottom.
My take: With 25x leverage, both holding on and cutting your position can be wrong. What really gets you is changing your mind as the price keeps falling.
The levels I’ll be watching next:
ETH 2,281–2,300: Liquidation prices for $211 million in longs are clustered here, about 7% below the current price.
BTC 83,908: That 40x trader has reversed for the third time in two days and opened another 40x short.
What would you do—hold on or cut? Tell me in the comments. #Liquidation
Yesterday I asked: Would that 25x ETH long get liquidated?
The answer: No. But the outcome felt even worse than getting liquidated.
Yesterday morning, he was holding 19,575 ETH worth $50 million, at 25x leverage.
As ETH fell, he started selling. He sold a few hundred with every drop, and the faster it fell, the faster he sold.
By midnight, he had sold a total of 16,115 ETH, worth about $40 million.
His realized loss: $999,000. Not a single forced liquidation—he cut every position himself.
His final sale was at 2,410.6.
ETH’s low for this move: 2,410.1.
24 minutes later, he started buying back in.
The day before, he bought every dip. Yesterday, he sold every dip. His final sale landed right at the bottom.
My take: With 25x leverage, both holding on and cutting your position can be wrong. What really gets you is changing your mind as the price keeps falling.
The levels I’ll be watching next:
ETH 2,281–2,300: Liquidation prices for $211 million in longs are clustered here, about 7% below the current price.
BTC 83,908: That 40x trader has reversed for the third time in two days and opened another 40x short.
What would you do—hold on or cut? Tell me in the comments. #Liquidation