🐋 $ETH During this round of volatility in perpetual futures, a $1.25 million long position was liquidated, with the price around 2438.39.
Large liquidations usually happen when leveraged positions can’t withstand a move like this.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t need to move very far for a position to be liquidated.
The point of understanding this indicator is to be less startled by the numbers, not to use it to predict tops or bottoms.
#ETH
For informational purposes only, not trading advice.
Large liquidations usually happen when leveraged positions can’t withstand a move like this.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t need to move very far for a position to be liquidated.
The point of understanding this indicator is to be less startled by the numbers, not to use it to predict tops or bottoms.
#ETH
For informational purposes only, not trading advice.