u.today
A prominent trader recently lost more than $6 million after going long on Ethereum ($ETH) on the verge of another market correction. The trader went from having $43 million to securing only minor gains.
"Easy come, easy go"
The trader managed to turn $125,000 into $29.6 million in just four months by going irresponsibly long on Ethereum ($ETH).
The trader "masterfully" compounded profits, putting all gains back into his $ETH long. He eventually managed to accumulate an enormous $ETH position worth roughly $303 million.
His peak profit reached a whopping $43 million after months of legendary moves.
However, things went south quickly, and the trader's profit started shrinking at a rapid pace.
On Aug. 18, the trader closed all $ETH longs, securing a massive profit of $6.9 million.
Even though the aforementioned sum is far from the peak value of his account, he still managed to walk away with a gain of 55X.
The trader, however, did not stop there. According to Lookonchain, the trader ended up reopening an $ETH long and losing all of his remaining gains during the most recent market crash.
His account is now worth a mere $771,000 after virtually all gains have been wiped out.
While the trader is still sitting at 5X, the losses must have been devastating for him.
16% correction
Ethereum went on a monster run last July, surging by a whopping 49%.
Bolstered by strong ETF inflows and growing corporate adoption, the altcoin went on to extend its rally in August. It peaked at $4,791 earlier this month, coming awfully close to reaching a new all-time high.
However, the rally has now stalled, with the $ETH price plunging to an intraday low of $4,064 earlier this Wednesday.
The token has now recorded a 16% correction from the aforementioned local peak.
