Crypto Whale Wiped Out in $308M Leveraged Ether Trade

Massive liquidation highlights the dangers of high-risk trading in volatile markets

A major cryptocurrency trader, often referred to as a "whale," has suffered a staggering loss of more than $308 million after a heavily leveraged Ether (ETH) trade went south. The massive liquidation underscores the inherent dangers of high-leverage trading, particularly during turbulent market conditions.

Whale’s 50x Leveraged Bet Ends in Disaster

Blockchain data from Hypurrscan reveals that the unidentified trader held a 50x leveraged long position on Ether, amounting to over 160,234 ETH - worth approximately $308 million at the time. Leveraged positions allow traders to borrow funds to amplify their bets, potentially leading to enormous profits but also catastrophic losses.

The whale initially entered the trade when Ether was priced at $1,900, with a liquidation threshold set at $1,877. However, as ETH prices dropped, the trader’s position was forcibly liquidated, erasing the entire investment.

According to on-chain intelligence firm Lookonchain, the trader had previously converted all of their Bitcoin (BTC) holdings into this high-stakes Ether position before facing the massive loss.

Market Volatility and Global Tensions Amplify the Sell-Off

This high-profile liquidation occurred amid a period of heightened market volatility, driven by global trade war tensions. Recently, the European Union imposed retaliatory tariffs, causing uncertainty in both traditional and crypto markets.

Ether’s price has been in a downward spiral since December 16, 2024, when it peaked above $4,100. Since then, ETH has tumbled more than 53%, raising concerns among investors.

Will Ether Fall to $1,800?

Bitfinex analysts point to macroeconomic uncertainties and declining developer activity on the Ethereum network as key reasons behind ETH’s underwhelming performance.

“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,” analysts told Cointelegraph.

However, the sell-off isn’t limited to ETH alone. The broader crypto market has been experiencing a correction, with all risk assets under pressure due to growing fears surrounding trade tariffs.

US Spot Ether ETFs See Persistent Outflows

Adding to the bearish outlook, US spot Ether exchange-traded funds (ETFs) have been struggling with net negative outflows for the fourth consecutive week. Data from Sosovalue indicates that over $119 million worth of ETH has been pulled from ETFs in just the past week, further limiting the asset’s upside potential.

With mounting macroeconomic headwinds and declining investor confidence, Ether’s near-term trajectory remains uncertain, leaving traders and investors closely watching key support levels in the coming days.