The cryptocurrency market once again showcased its unpredictable and volatile nature after an Ether (ETH) trader nearly lost everything in a matter of days.
In just four months, one trader managed to grow an initial investment of $125,000 into over $43 million, thanks to leveraged long positions on Ether. The incredible run briefly made the wallet one of the most profitable in the market.
However, the story took a sharp turn this week. According to blockchain tracking platforms, the trader locked in $7 million in profits on Monday, but shortly after, a sudden drop in ETHâs price triggered massive losses.
Liquidation Wipes Out Millions
On Wednesday, as Ether fell close to $4,000 amid a broader crypto market correction, the traderâs leveraged position on the decentralized exchange Hyperliquid was liquidated for $6.22 million.
This left the once-legendary account with just $771,000 â meaning nearly four months of gains were erased in just two days.
Blockchain analytics firm Lookonchain highlighted the dramatic event in an X (formerly Twitter) post, calling it a reminder of the dangers of high leverage trading.
Other Prominent Traders Hit
The crash didnât just affect one individual. Well-known leverage trader James Wynn also suffered liquidations. His long position on Ether was cut down to just $300,000 worth of ETH, with liquidation looming if the token drops further below $4,113. Wynn admitted he is now âall-inâ and may need to cut back on living expenses if the expected altcoin season doesnât materialize.
Whale Panic Selling vs. Smart Accumulation
The downturn triggered panic among whales, with three large wallets unloading a combined $147 million worth of Ether.
- Wallet 0x1D8d sold $77 million
- Wallet 0x5A8E sold $57 million
- Wallet 0x3684 sold $12 million
Yet, not everyone saw the correction as a reason to flee. Other whales treated it as a buying opportunity. For instance:
- Wallet 0x159 purchased $3.4 million worth of ETH
- Wallet 0x929 acquired $3.16 million
- Wallet 0x5dc bought $2.9 million
Even the Radiant Capital exploiterâs wallet re-entered the market, grabbing $16.6 million worth of Ether.
Whatâs Next for Ethereum?
All eyes are now on US Federal Reserve Chair Jerome Powellâs speech at Jackson Hole, which many analysts believe could be the defining factor for markets this week.
According to Iliya Kalchev of digital asset platform Nexo, âThe next move in crypto may hinge more on central bank signals than on sentiment alone.â
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.