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Trader Down from 43 Million to 770,000 as Ethereum Price Falls
A legendary trader known for transforming an initial investment of 125,000 dollars into over 43 million dollars has seen nearly all his fortune disappear following the recent price crash of Ethereum. According to reports, the trader had opened a long position on ETH during the recent rally, but was liquidated, leaving him with a balance of just $771,000 when prices drastically returned to their previous highs.
The trader’s account, once valued at 43 million dollars, has taken a devastating hit following the significant drop in Ethereum’s price. Just days ago, he had closed an enormous long position on ETH worth 66.749 ETH, valuing at 303 million dollars, securing a profit of $6.86 million, equivalent to a return of 55x on his initial investment of 125,000 dollars.
However, the recent collapse in Ethereum’s price has wiped out almost all of his gains over the last few days, leaving him with a mere fraction of his former wealth. The trader’s account has plummeted by approximately $42.2 million in a matter of days.
This dramatic turnaround highlights the brutal volatility of the market and underscores the risks associated with holding overly leveraged positions without protecting one’s gains as prices continue to rise.
Analysts view this recent crash as a healthy correction, pointing out that Ethereum is currently consolidating within the 4.075-4.150 $ range, which they consider a risk-reward scenario favorable for investors by mid-week.
Thomas Lee, managing director and global head of technology strategy at Fundstrat, has stated in an email to the CIO and research director that the recent collapse in Ethereum’s price is consistent with Elliott Wave patterns and should not be interpreted as the end of Ethereum’s upward momentum. Instead, he believes that after this brief correction, Ethereum may surge towards a new all-time high near 5,100 $.
It remains to be seen whether this trader will recover from his losses or continue on a downward spiral due to his recent actions.
Source: bitcoinist.com
