A cryptocurrency trader who recently saw their account rise from $125,000 to over $43 million nearly faced liquidation on Wednesday for $6.2 million after Ether briefly approached the $4,000 mark.
The liquidation occurred on the decentralized exchange Hyperliquid as Ether (ETH) fell near $4,000 amid a wider market correction, demonstrating the volatility that can surprise even experienced traders.
This incident came just two days after the trader had transformed an initial investment of $125,000 into more than $43 million at its highest, before securing nearly $7 million in profit on Monday, according to Cointelegraph.
“This legendary trader went long on $ETH again but was liquidated during the market crash, incurring a loss of $6.22M,” stated blockchain data platform Lookonchain in a Wednesday X post. “Now only $771K remains—four months of gains nearly erased in just two days.”
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The market downturn also affected other notable traders. Multimillionaire leverage trader James Wynn’s long Ether position experienced partial liquidation, reducing his holdings to just $300,000 in ETH, which is at risk of further liquidation if Ether’s price dips below $4,113, according to Lookonchain’s Tuesday X post.
Wynn is recognized as one of the industry’s leading traders, anticipating an upcoming altcoin season in the current cycle.
After the partial liquidation on Wednesday, Wynn stated he was “all-in” with no remaining stablecoins to invest, mentioning he would need to “significantly reduce” his living expenses if the altcoin season doesn’t materialize.
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Ether whales have panicked and sold into the market downturn
Some whales have reacted with panic, selling millions of dollars worth of ETH amidst the current market downturn.
Three major whales have sold a total of $147 million in Ether, including $77 million from wallet “0x1D8d,” $57 million from wallet “0x5A8E,” and over $12 million from wallet “0x3684,” according to Lookonchain.
Other astute traders view the market correction as a buying opportunity.
On Wednesday, a wallet identified as “0x159”—a top 100 trader tracked by Nansen—purchased $3.4 million worth of Ether. In contrast, ETH whale “0x929” acquired $3.16 million, while whale wallet “0x5dc” bought $2.9 million in ETH, Nansen data indicates.
The market downturn even prompted the infamous Radiant Capital exploiter’s wallet to acquire $16.6 million worth of Ether.
Meanwhile, cryptocurrency investors are turning their attention to US Federal Reserve Chair Jerome Powell’s monetary policy speech at Jackson Hole on Friday, which is expected to be a “defining moment” for the week, as noted by Iliya Kalchev, dispatch analyst at digital asset platform Nexo.
“The next move in crypto may rely more on central bank signals than on market charts,” the analyst informed Cointelegraph.
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