Whale ETH short positions are currently showing an unrealized loss of $1.68 million, driven by this 9.99% 7-day increase.

A whale address named pension-usdt.eth is paying the price for its bearish stance. According to the latest news, this address’s 3x short ETH position is currently floating with a loss exceeding $1.68 million. This not only reflects the losses of a single trader but also highlights the current strength of ETH’s upward market movement.

ETH Uptrend Background: Market Trends from Data

Recent Price Increase Data

ETH’s current price is $3,216.34. Notably, the 7-day increase reaches 9.99%, which for traders holding short positions represents a continuous loss. The 30-day increase of 5.26% indicates that this rally has been concentrated mainly over the past week.

Market Cap Support

ETH’s market capitalization has reached $38.82 billion, accounting for 12.12% of the market. The 24-hour trading volume is $2.511 billion, a 56.25% increase from the previous day. This suggests that market participation and liquidity are also increasing during the rally.

Leverage Short Risks Mechanism

Why is the floating loss so large?

pension-usdt.eth’s position is a 3x leveraged short. Simplified:

• Using $1 of capital to open a 3x short position is equivalent to shorting $3 worth of ETH
• If ETH rises by 1%, this short position loses 3%
• A 9.99% increase over 7 days, amplified by 3x, results in a theoretical loss close to 30%

A floating loss of $1.68 million indicates that the principal size of this position is quite substantial.

Potential Risks

• Liquidation Pressure: If losses continue to grow, forced liquidation may occur
• Chain Reaction: Large liquidations could impact the market
• Psychological Pressure: Massive floating losses often push traders to make more aggressive decisions

Market Signal Analysis

This event reflects several noteworthy phenomena:

• Declining Bearish Confidence: Large short positions with losses suggest previous bearish bets have gone awry
• Sustained Upward Momentum: Nearly 10% increase over 7 days without significant correction
• Increased Trading Activity: 56.25% growth in 24-hour volume indicates rising market participation

Summary

The $1.68 million floating loss of pension-usdt.eth essentially mirrors the recent upward trend of ETH. While this rally may not seem extreme in the short term, it represents real losses for traders holding high-leverage short positions. Current market liquidity and participation are supporting this upward movement to continue. For other traders, this also serves as a reminder of the importance of risk management in leveraged trading—no matter how confident your judgment may seem, market conditions can force you to admit mistakes and cut losses promptly.