Ethereum’s ETH Drops 11%, Ether Shorts Gain $68M on 50x Leverage

Ethereum’s Big Price Drop: A $68 Million Bet

In the fast-paced world of cryptocurrency, people can make or lose a lot of money in just a few hours. Recently, someone made headlines by making nearly $68 million from a bet against Ethereum (ETH). This happened when Ethereum’s price dropped by 11% during a time of high volatility in the crypto market. Let’s find out more about this bet and why Ethereum’s price went down.

The Big Bet: Shorting Ethereum

The person who made this bet opened a position when Ethereum was worth $3,176. They bet against Ethereum’s price, meaning they thought it would go down. This is called “shorting.” The trader borrowed 70,131 ETH, which is worth over $155 million now. If the price goes down, the trader can buy back the ETH for less and make a profit. This bet has already made the trader $3.2 million in fees. However, if Ethereum’s price goes above $3,460, the bet could be lost.

Ethereum’s Price Rollercoaster

Ethereum’s price has been going up and down a lot lately. In the past few weeks, it dropped by 15% in just one day and reached its lowest point since November 2023. This happened because of several reasons:

    • People were worried about a possible trade war between the U.S. and China.
    • There wasn’t much interest from big investors.
    • Many people who had bets that Ethereum’s price would go up lost their bets, which put more pressure on the price.

People who bet on what will happen to Ethereum think there’s a 76% chance it will drop to $1,900 by the end of March. Technically, Ethereum’s price might go down more if it falls below $2,000.

Looking Ahead: Ethereum’s Future

Even though Ethereum’s price is going down now, there are some upcoming changes that could affect its price in the future. An upgrade called Pectra is planned to make the network work better and reduce the amount of work it has to do. This could make Ethereum’s price go up. However, there have been some delays with this upgrade, and investors are waiting for more information about when it will happen.

What’s Next for Ethereum?

In conclusion, the recent Ethereum price drop and the big bet show how volatile the cryptocurrency market can be. As Ethereum faces these challenges, upcoming changes like the Pectra upgrade could help its price go up in the future. However, the future is uncertain, and many things can affect Ethereum’s price, like what’s happening in the global economy and what people think about it.