Trader Goes From 43 Million to $770,000 As Ethereum Price Plummets | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure A legendary trader of Ethereum (ETH), known for turning a modest capital of $125,000 into over $43 million, has seen nearly all of his fortune evaporate following the recent drop in the price of Ethereum. According to reports, the trader had opened a long position on ETH during the recent bullish rally, but was liquidated, leaving his balance at $771,000 when prices drastically fell from their highs.

42 million wiped out in the price crash of Ethereum

In one of the most dramatic downturns in recent history, a legendary trader, known for turning $125,000 into $43 million, has suffered a devastating loss. The blockchain analysis platform Lookonchain reports that the trader reopened a long position on Ethereum, only to be hit by the latest price crash. The sharp correction wiped out his leverage, causing liquidations that erased $6.22 million, leaving his account with just $771,000.

Until recently, the trader had built a solid portfolio, taking advantage of the rally of Ethereum with a series of well-thought-out positions. A few days ago, he closed a massive long of 66,749 ETH, worth 303 million dollars, securing a profit of 6.86 million, equivalent to a 55x gain on the initial capital of 125,000 $. At the peak of his run, his total assets had surpassed 43 million dollars, an increase of 344 times from the starting point.

The crash this week, however, has wiped out almost all of the trader's progress. In just two days, Lookonchain reports, four months of gains have been erased, leaving him with a fraction of the capital he had accumulated. The drop from the peak of 43 million highlights a collapse of about 42.2 million dollars.

For a trader who was close to executing one of the most successful ETH trades of the year, the drastic price reversal of Ethereum highlights the brutal volatility of the market. It also underscores the risks associated with overly leveraged positions and the danger of not protecting profits while prices continue to rise.

Analysts view the decline as healthy

The price of Ethereum has recorded a 10% decline this week, triggering a series of liquidations and widespread sales in the market. However, analysts suggest that the retracement of ETH is not a cause for panic. Mark Newton, technical analyst and managing director/global head of technology strategy at Fundstrat, emphasized that Ethereum is undergoing what he considers a healthy correction.

In an email to the CIO and the head of research at Fundstrat, Thomas Lee, Newton highlighted that ETH is consolidating in the $4,075 – $4,150 range, which he considers a favorable risk-reward zone for the middle of the week. The technical analyst confirmed that the recent decline of Ethereum is consistent with Elliott Wave patterns and should not be interpreted as the end of Ethereum's bullish momentum.

On the contrary, he believes that after this brief correction, Ethereum could rise towards a new all-time high near $5,100. According to this bullish thesis, the retracement represents a phase of temporary cooling, not the beginning of a prolonged downturn.

SOURCE: TRADING VIEW

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