A large cryptocurrency trader, known as a whale, suffered a staggering $308 million loss after a leveraged Ether position was liquidated, highlighting the risks of high-leverage trading in turbulent market conditions.
Blockchain data from Hypurrscan reveals that the unknown trader was liquidated on a 50x leveraged long position, amounting to over 160,234 Ether (ETH), valued at more than $308 million at the time of the transaction. Leveraged positions amplify both potential gains and losses, making them highly risky in volatile markets.
The whale opened the position when Ether traded at $1,900, setting a liquidation price at $1,877. Onchain intelligence firm Lookonchain reported that the trader had fully rotated their Bitcoin holdings into this high-risk Ether trade before facing liquidation.
The forced liquidation coincided with a broader market downturn driven by escalating global trade war concerns. Recent retaliatory tariffs from the European Union have compounded uncertainty, impacting both cryptocurrency and traditional financial markets.
Ether’s downward trajectory has been reinforced by macroeconomic pressures and declining builder activity on the Ethereum network. Analysts at Bitfinex note that high operating fees have deterred new projects and developers from engaging with Ethereum, contributing to its prolonged weakness. They identify $1,800 as a crucial level to monitor for further downside risk.
The recent sell-off extends beyond Ether, affecting a wide range of risk assets as markets react to tariff-related economic pressures. Additionally, sustained outflows from US spot Ether exchange-traded funds (ETFs) have weighed on investor sentiment. Sosovalue data shows that Ether ETFs have recorded four consecutive weeks of net negative outflows, with over $119 million exiting in the past week alone.
Despite prevailing bearish sentiment, some market participants remain optimistic about Ethereum’s long-term outlook. Institutional investors continue to anticipate a market recovery, though near-term risks persist as global economic uncertainty and ETF outflows dampen price momentum.