r/CryptoCurrency • u/Next_Statement6145 🟨 0 / 0 🦠 • 14h ago
GENERAL-NEWS $2.2B in shorts will be liquidated when ETH hits $5000
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u/LivingTheTruths 🟩 0 / 0 🦠 13h ago
Shorts made money the last 4 years shorting ETH. It’s time to flip the script lol
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u/decomposition_ 🟦 4 / 2 🦠 13h ago
Wouldn’t be unreasonable to assume we’re heading there now with all the longs liquidated right? Buy pressure must be even higher after that
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u/diskape 🟦 0 / 1K 🦠 6h ago edited 5h ago
We are but not short term. September is always in the red, there’s a queue of unstaked ETH just waiting to be sold (ppl want to get some gains - and who to blame them, they were in the red for years).
NVidia earning call this week (will most def be on the uptick) but news is already priced in and with AI bubble noise around, their stock will probably see some red too. This will drag down entire tech sector and whether we like it or not, crypto trails tech.
6k by end of year is possible but we may see 3800-3900 before we get there.
Or all I wrote can mean squat cuz crypto does what crypto does xD
Edit: forgot to mention that we haven’t seen correction. ETH tripled since April, it’s possible - expected even - to see 15-25% correction in price before the next big move.
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u/Purple_Errand 🟩 13 / 13 🦐 13h ago
Not really. you won't really see it 2B gets liq. position can be resize by adding more margin.
You'll only see the whole 2B gets wiped when 1 flash candle occur but that is impossible to these days. most of those open positions are from month of May.
The longer it holds the more short and long position get equalized in P/L since there is what we called "Funding fee" and long is bleeding a lot of day by day
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u/Instantbeef 🟦 238 / 238 🦀 12h ago
My entire understanding of shorts is from the big short and I always get confused when people say shorts will get liquidated at a certain price.
In the movie they just pay a bunch of money to keep the position open and these people with eth will have the same option right?
But also I’m confused how your shorting price would ever be above the ATH of the asset. Like what don’t I understand
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u/gpattikjr 🟩 0 / 0 🦠 10h ago
You have the chance to add cash to pay down the margin call. Unfortunately they're probably maxed out and let the broker liquidate their position at a loss.
The shorting price. They probably sold shares at the earlier ath thinking it would go back to 4400. Then they would buy the shares there to cover, making profit on the reverse. However it continued to go higher which turns negative, because your betting on it going down. After the loss is large enough, which happens to be around the new ath, they got margin called and liquidated.
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u/Instantbeef 🟦 238 / 238 🦀 9h ago
Is the graph in the post information from aave or something? I don’t get how they have this information if it’s not.
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u/Thirty2511 🟨 0 / 0 🦠 3h ago
yeah funding fees slowly grind people down, even if positions don’t instantly wipe. that’s why I like holding $PEAQ more, less stress than watching leverage games and it’s still way undervalued.
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u/Aggressive_Lawyer_38 🟩 0 / 0 🦠 9h ago
Bro this is literally the sign to short it
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u/Crytid_Currency 🟩 0 / 0 🦠 40m ago
Honestly seems like a great way to lose money. The setup really doesn’t seem to favor shorts.
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u/MichaelAischmann 🟦 1K / 18K 🐢 13h ago
These statements should include liquidated longs if things go the other way, you know, for perspective.
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u/ICE-FlGHT 🟩 0 / 0 🦠 12h ago
Whats the point of investing in crap like this if this is the end result?
What a joke.. shame on the eth foundation too
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u/Past_Gur_3785 🟦 0 / 0 🦠 13h ago
6k soon babyyy 😁