An ETH trader, who took an initial investment of $125,000 to more than $6.8 million in four months, has now had a massive reversal, losing $6.22 million during Wednesday’s market correction.
The near-total liquidation occurred via decentralized exchange Hyperliquid after the price of Ethereum briefly dipped toward the $4,000 price level, triggering margin calls.
Only two days before, the trader was reported to have made a profit of $6.8 million according to UnoCrypto, which shows how quickly profits in the volatile crypto market can disappear.
According to blockchain data tracker Lookonchain, the trader’s balance fell to just $771,000 after the liquidation, essentially losing virtually all of the extraordinary profits created in the four months.
Prominent Traders Caught in the Downtrend
The loss did not only impact retail traders but also hit some known figures in crypto trading circles.
James Wynn, a multimillionaire leverage trader who also has some of the most aggressive Ethereum and Bitcoin bets, suffered a partial liquidation of his position.
The injury left him with a $300,000 ETH long, which further remains at risk if the price drops below $4,113.
Wynn has been vocal in predicting a great altcoin season this cycle but admitted after the damage, he is now all-in with no stablecoins to re-invest.
Earlier today, he made a post on X, stating candidly that if the long-awaited altcoin season does not arrive within a reasonable time frame, he will need to “drastically cut down” on personal expenses, demonstrating the risk of over-leveraging.
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Whales React With Panic Sales and Strategic Buys
The broader decline shook the confidence of Ethereum whales, many of whom liquidated large holdings during the decline.
Lookonchain data indicates that three of the largest wallets combined sold $147 million worth of ETH when the price fell.
Wallet “0x1D8d” sold $77 million, wallet “0x5A8E” sold $57 million, and wallet “0x3684” sold over $12 million.
Panic-induced selling creates more volatility in the market, causing more liquidations across long leverage positions. Other whales, however, did not share the panic as many seized the opportunity to buy during the correction.
Ethereum Price Outlook As Strategic Buyers Enter the Market During Sell-Off
Despite the headlines being dominated by panic selling, a number of notable traders and wallets seized the chance to pile into Ether at discount prices.
Nansen data revealed that the top 100 trader on its platform “0x159” bought $3.4 million in ETH on Wednesday.
Whale wallet “0x929” bought $3.16 million, and wallet “0x5dc” bought $2.9 million. Even the wallet of the Radiant Capital exploiter, which previously made a lot of illicit gains, re-entered the market with a purchase of $16.6 million in ETH.
The opportunistic movements show there is a significant divide in sentiment, with some traders capitulating, while others are getting set for a rebound.
At the time of writing, Ethereum (ETH) is trading at $4,223.34, down -1.17% in the last 24 hours and down -8.63% in the last week.
With a circulating supply of 120 million ETH, the cryptocurrency currently has a $510 billion market cap.
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