Trader lost over $ 3.2 million per day on Ethereum transactions

The trader suffered losses of more than $ 3.24 million in less than a day after opening a long position on Ethereum ETH $3,058.89 Bridged Ether (StarkGate) -3.58% Market capitalization $71.76 million VOL. 24 hours $1.61 billion . According to Lookonchain analysts, the deal was opened on December 10 at the local price peak, when ETH was trading at around $ 3411. The investor used a leverage of 7x, hoping for further growth of the asset, but the market turned in the opposite direction.

When the price began to decline, the trader partially closed the position, recording a loss of $ 583,500. The rest of the assets remained in the position — a total of 11,793 ETH, which at the time of publication corresponded to unrealized losses of $ 2.66 million. Potential liquidation may occur if the Ethereum price drops to $ 2929.

At the time of data recording, Ethereum was trading about $ 200 below the trader’s entry price. Thus, he holds a position with a high level of risk, as even a slight drop in the rate can lead to forced liquidation. According to HyperDash analysts, the situation demonstrates a typical mistake of excessive leverage in a volatile market.

Such episodes indicate increased nervousness in the altcoin market and, in particular, Ethereum, whose rate remains sensitive to changes in investor sentiment and macroeconomic news. Experts note that risky longs with significant leverage often end in quick losses even for experienced players.

Earlier, analysts reported that traders were placing large-scale bets on Ethereum’s growth to $ 6500, expecting a positive effect from network updates and the potential approval of ETFs on ETH in the United States. However, the current volatility confirms that even in the case of a general bullish trend, short-term fluctuations can be fatal for overly aggressive strategies.