Ether Trader Loses $6M After Epic $125K to $43M Run
Ether Trader Loses $6M After Epic $125K to $43M Run
Major Liquidation Hits Successful Crypto Trader
A cryptocurrency trader who recently increased their account from $125,000 to more than $43 million was almost liquidated on Wednesday for $6.2 million after Ether briefly fell near the $4,000 level.
The liquidation occurred on the decentralized exchange Hyperliquid as Ether dipped close to $4,000 amid a broader market correction, highlighting the volatility that can catch even seasoned traders off guard.
From Millions Back to Thousands in Days
The massive loss came just two days after the trader had turned an initial investment of $125,000 into more than $43 million at its peak, before locking in nearly $7 million worth of profit on Monday.
"This legendary trader went long on ETH again but was liquidated in the market crash, losing $6.22M," said blockchain data platform Lookonchain in a Wednesday post. "Now only $771K remains—4 months of gains nearly wiped out in just 2 days."
Other Prominent Traders Face Similar Losses
The market downturn also hit other prominent traders. Multimillionaire leverage trader James Wynn's long Ether position was also partially liquidated, leaving him with a partial long of just $300,000 worth of ETH, which stands to be liquidated if Ether's price falls below $4,113.
Wynn is among the industry's most prominent traders expecting a forthcoming altcoin season during the current cycle. After the partial liquidation, Wynn stated he was "all-in" with no more stablecoins left to invest, adding that he will be forced to "drastically cut down" living expenses if the altcoin season doesn't occur.
Ether Whales Panic Sell During Market Downturn
Some whales have panicked and sold millions of dollars of ETH during the current market downturn. Three large whales have collectively sold $147 million worth of Ether, including:
$77 million sold by whale wallet "0x1D8d"
$57 million sold by whale wallet "0x5A8E"
Over $12 million sold by whale wallet "0x3684"
Smart Money Sees Buying Opportunity
Other savvy traders are viewing the market correction as a buying opportunity. On Wednesday, several major wallets made significant ETH purchases:
Wallet "0x159" (a top 100 trader) acquired $3.4 million worth of Ether
ETH whale "0x929" bought $3.16 million worth
Whale wallet "0x5dc" acquired $2.9 million worth of ETH
The market downturn even inspired the notorious Radiant Capital exploiter's wallet to acquire $16.6 million worth of Ether, showing confidence in ETH's long-term prospects.
Federal Reserve Decision Could Impact Crypto Markets
Cryptocurrency investors are focusing their attention on US Federal Reserve Chair Jerome Powell's monetary policy speech at Jackson Hole on Friday, which is expected to be the week's "defining moment," according to digital asset platform Nexo analyst Iliya Kalchev.
"The next move in crypto may hinge more on central bank signals than on charts," the analyst noted, emphasizing the importance of traditional financial policy on cryptocurrency markets.
Key Takeaways for Crypto Traders
This incident highlights several critical lessons for cryptocurrency traders:
High leverage trading carries extreme risks even for successful traders
Market volatility can quickly erase months of gains
Risk management is crucial regardless of past success
Smart money often views market corrections as buying opportunities
External factors like Federal Reserve policy significantly impact crypto markets
The dramatic loss serves as a reminder that in cryptocurrency trading, fortunes can be made and lost within days, emphasizing the importance of proper risk management and position sizing.
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