Event Recap: Complete Downward Chain Within 30 Minutes
Recently, in Beijing time, ETH experienced an extremely rapid plunge. The price quickly dropped from approximately $3,126 to $3,045, then continued to probe lower to $2,991, ultimately stabilizing around $2,992.53. This sharp decline was not an isolated event but a perfect storm of collective forced liquidations by leveraged traders, chain reactions in algorithmic systems, and technical breakdowns.
During the entire decline, trading positions using 25x leverage faced partial forced liquidations, with some accounts losing over $315,700. Panic quickly spread across the market. The wave of automatic stop-loss orders and algorithmic trading sell-offs further intensified the downward movement.
Deep Driving Factors: Triple Pressure Overlap
The "lethality" of high leverage
High leverage trading is essentially a double-edged sword. When the market experiences small fluctuations, 25x leverage means that accounts may face