Trader loses $15 million in Ethereum trade mistake

A famous cryptocurrency trader known for making profitable trades has seen a major turnaround in his history. According to data from Spot on Chain, the trader lost $15.7 million worth of Ethereum on Binance.

Apparently, the loss occurred after the trader made a mistake in his assessment and made a wrong trade. As a result, he lost, in one fell swoop, almost all the profits he had made in his long trading history.

The case shows that despite the success that many traders achieve, an error in assessment can cause huge and sometimes irreversible losses.

Trader loses $15.7 million despite profitable track record

According to the Spot On Chain publication on X, the trader used the wallet “0x75ba…”, in which he deposited 8,825 ETH, worth around US$ 24.1 million. This operation took place on Binance

Prior to this transaction, the trader had withdrawn 19,436 ETH from Binance, worth $68.21 million. The average price was $3,509 per ETH. To do this, the trader used two crypto wallets to make this withdrawal between May 29 and August 3, 2024.

Later on May 26, the whale deposited 8,825 ETH ($24.09 million) back into Binance at an average price of $2,729. By selling at this price, the trader took a huge risk, losing a significant amount on this trade.

However, it doesn’t end there as the whale failed to analyze the situation. He kept 10,619 ETH ($28.45 million) in his personal wallet (0x4fa6). This loss amounted to over $15.7 million, all because the trader bought high and sold low.

“The market turmoil has also hit smart traders hard! 11 hours ago, a whale deposited 8,825 $ETH ($24.1M) into Binance, leaving behind 10,619 ETH ($28.5M) for an estimated total loss of $15.7M (-23%) from the third ETH trade in progress,” Spot on Chain said.

While profits and losses are part of the industry, this trade became more significant given the trader’s track record. In fact, he made $38 million in profits from ETH trading between November 2022 and May 2024, making a 26.7% profit on the trade – a feat that was not repeated this time around.

How is Ethereum performing now?

Although there were expectations that the price of ETH would break its all-time high in early Q2 2024, this did not happen. Not even the approval of Ethereum ETFs, which caused the price to rise, served to make the cryptocurrency break at least the $3,000 barrier.

In the last 30 days alone, the price of ETH has fallen by 24%, while Bitcoin (BTC) has fallen by 13% in the same period. On the positive side, there has been a 78% increase in trading volume, which reached $22.2 billion, indicating the growing demand for the cryptocurrency.

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