A cryptocurrency trader who recently grew their account from $125,000 to over $43 million nearly faced liquidation on Wednesday for $6.2 million after Ether dipped close to the $4,000 mark.
This liquidation occurred on the decentralized exchange Hyperliquid as Ether (ETH) fell near $4,000 during a broader market correction, underscoring the volatility that can surprise even experienced traders.
Just two days before, the trader had escalated their initial investment of $125,000 to over $43 million at its peak, before securing nearly $7 million in profit on Monday, as reported by Cointelegraph.
“This legendary trader went long on $ETH once more but was liquidated in the market downturn, losing $6.22M,” stated blockchain data platform Lookonchain in a Wednesday X post. “Now only $771K remains—4 months of gains almost erased in just 2 days.”
Wallet “0x5f7.” Source: Hyperdash
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The market decline also impacted other notable traders. Multimillionaire leverage trader James Wynn’s long Ether position was partially liquidated, leaving him with a remaining long of just $300,000 worth of ETH, which will be liquidated if Ether’s price drops below $4,113, according to Lookonchain’s Tuesday X post.
Source: Lookonchain
Wynn is among the industry’s leading traders expecting an upcoming altcoin season in this cycle.
On Wednesday, post-partial liquidation, Wynn tweeted that he was “all-in” with no stablecoins left to invest, stating that he would have to “drastically cut down” on 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 fearfully, selling millions of dollars worth of ETH during the current market downturn.
Three large whale accounts have collectively divested $147 million worth of Ether, including $77 million by wallet “0x1D8d,” $57 million from wallet “0x5A8E,” and over $12 million by wallet “0x3684,” according to Lookonchain.
Conversely, other shrewd traders view the market correction as an opportunity to buy.
On Wednesday, a wallet labeled “0x159”—one of the top 100 traders tracked by Nansen—purchased $3.4 million worth of Ether. In comparison, ETH whale “0x929” bought $3.16 million and whale wallet “0x5dc” acquired $2.9 million worth of ETH, as shown by Nansen data.
Source: Nansen
The market slump even prompted the notorious Radiant Capital exploiter’s wallet to acquire $16.6 million worth of Ether.
Meanwhile, cryptocurrency investors are focusing on US Federal Reserve Chair Jerome Powell’s monetary policy speech at Jackson Hole on Friday, expected to be the week’s “defining moment,” according to Iliya Kalchev, a dispatch analyst at the digital asset platform Nexo.
“The next move in crypto might depend more on central bank signals than on charts,” the analyst told Cointelegraph.
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