A significant player in the cryptocurrency market, often referred to as a whale, suffered a loss exceeding $308 million on a leveraged Ether position, highlighting the dangers of leveraged trading amid market fluctuations.
An unidentified cryptocurrency trader experienced liquidation on their long position, which was 50 times leveraged and involved over 160,234 Ether (ETH), valued at more than $308 million at the time, according to data from a blockchain analysis platform.
Leveraged positions utilize borrowed funds to amplify the size of an investment, resulting in increased potential for both profits and losses, thus making leveraged trading riskier than traditional investing methods.
The trader’s address detailing transactions.
The whale initiated the initial 50x leveraged position when ETH was priced at $1,900, with a liquidation threshold set at $1,877.
Image depicting the trader’s actions.
As reported by an on-chain analytics firm, the whale converted all of their Bitcoin (BTC) holdings into this leveraged Ether trade before facing the significant liquidation of approximately $306 million.
This liquidation occurred during a time of increased market volatility, influenced by global trade tensions exacerbated by the latest tariffs from the European Union affecting both crypto and traditional financial markets.
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Ether faces potential drop to $1,800 amid tariff apprehensions and ETF outflows
Ether’s value has plummeted more than 53% since it began its downward trend on December 16, 2024, following a peak that surpassed $4,100.
ETH/USD, daily chart showing a downtrend.
Analysts from a trading firm attribute Ether’s declining performance to ongoing macroeconomic issues and a lack of development activity on the Ethereum network.
“The absence of new projects or developers migrating to ETH, primarily due to high operational costs, is likely the main reason for ETH’s underwhelming results. […] We believe that $1,800 will serve as a crucial level to monitor for ETH,” the analysts elaborated.
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“Nevertheless, the current sell-off isn’t restricted to ETH alone; we are witnessing a broader market correction as concerns over tariffs affect all risk assets,” they added.
The performance of US spot Ether exchange-traded funds (ETFs) is also restricting Ether’s growth potential.
Cumulative net inflows into spot Ether ETFs.
US spot Ether ETFs have now experienced four consecutive weeks of net negative outflows, recording over $119 million in total outflows in the previous week, as indicated by relevant data.
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