- A crypto trader lost over $308 million after being liquidated on a 50x leveraged Ether position.
- The trader had converted all their Bitcoin holdings into this high-risk ETH position before the liquidation occurred.
- Ether has declined 53% since December 2024, facing headwinds from macroeconomic concerns, high network fees, and continued ETF outflows.
A cryptocurrency whale suffered a devastating $308 million loss when their highly leveraged Ether position was liquidated amid market volatility. The unidentified trader’s 50x leveraged long position of more than 160,234 ETH was wiped out as cryptocurrency markets reacted to global trade war concerns and continued downward pressure on Ethereum.
According to Hypurrscan data, the trader had established the position when ETH was trading at approximately $1,900, setting up a liquidation price of $1,877. When prices dipped below this threshold, the automatic liquidation triggered, resulting in the massive loss.
Leveraged trading, which uses borrowed funds to amplify investment positions, significantly increases both potential profits and losses compared to standard trading approaches. This case exemplifies the extreme risks associated with high leverage in volatile market conditions.
Lookonchain, an on-chain intelligence firm, revealed that the whale had converted their entire Bitcoin holdings into this ill-fated leveraged Ether trade before experiencing the liquidation. The timing coincided with heightened market uncertainty following the European Union’s announcement of retaliatory tariffs, which affected both cryptocurrency and traditional markets.
The liquidation comes during Ether’s prolonged downturn, with the cryptocurrency having fallen more than 53% since peaking above $4,100 in December 2024. Analysts from Bitfinex attributed Ether’s underperformance to two primary factors: broader macroeconomic concerns and diminished development activity on the Ethereum network.
“A lack of new projects or builders moving to ETH, primarily due to high operating fees, is likely the principal reason behind the lackluster performance of ETH. […] We believe that for ETH, $1,800 will be a strong level to watch,” Bitfinex analysts told Cointelegraph.
They further explained, “However, the current sell-off is not being seen solely in ETH, we have seen a marketwide correction as fears over the impact of tariffs hit all risk assets.”
Compounding Ethereum’s challenges, U.S. spot Ether exchange-traded funds (ETFs) have experienced four consecutive weeks of net outflows. Sosovalue data indicates that the previous week alone saw over $119 million withdrawn from these investment vehicles.
The ongoing ETF outflows, combined with reduced network activity and broader market uncertainty, suggest continued pressure on Ether prices in the near term. While $1,800 has been identified as a potential support level by analysts, the convergence of negative factors presents significant challenges for ethereum’s price recovery.
This massive liquidation serves as a stark reminder of the substantial risks associated with leveraged cryptocurrency trading, particularly during periods of market instability and declining asset prices.
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