Cryptocurrency Trader Loses $2 Million in Two Days Amid ETH Volatility

Coin WorldSunday, May 18, 2025 5:33 am ET
2min read

A cryptocurrency trader recently incurred a significant loss, amounting to approximately $2 million, over the course of two days. The trader sold 10,543 ETH, which was valued at around $26.1 million at the time of the sale. The average price per coin was $2,476, resulting in a substantial loss. This event highlights the volatility and risks associated with cryptocurrency trading, where prices can fluctuate dramatically in short periods. The trader's decision to sell at a time when the market was experiencing a surge, with ETH soaring 60% in a month, underscores the challenges of timing the market correctly. The incident serves as a cautionary tale for traders, emphasizing the importance of thorough market analysis and risk management strategies.

The trader executed the sale through a series of large swaps, most of which occurred within an hour. The ETH was sold using 1inch, a decentralized exchange aggregator, and multiple contract interactions to convert wrapped ETH (WETH) into stablecoins like USDC and USDT. This selloff coincided with a slight downturn in the broader cryptocurrency market, during which Ethereum also saw short-term losses. Rather than holding through the dip, the whale opted to exit the position, despite Ethereum maintaining support above the $2,500 level.

On-chain data shows increased whale activity around Ethereum amid the price pullback. On the same day, another large holder withdrew 6,053 ETH, worth roughly $15.66 million, from a cryptocurrency exchange, possibly signaling profit-taking following Ethereum’s recent rally. This activity suggests that other large investors are also taking profits, which could indicate a potential shift in market sentiment.

Despite the recent selloff, Ethereum has been among the best-performing assets in recent weeks, gaining around 61% over the past month to trade at $2,518 at the time of writing. ETH has remained consolidated on the daily and weekly charts, with gains of 1.2% and 1.4%, respectively. Market sentiment around Ethereum remains bullish. The current price is trading above the 50-day and 200-day simple moving averages (SMA), suggesting continued upward momentum. However, caution is warranted as Ethereum’s 14-day Relative Strength Index (RSI) stands at 66.51, nearing the overbought threshold. This indicates that while the market is bullish, there is a risk of a correction in the near future.

Analysts believe the recent momentum around the asset has built the foundation for a new high, noting that ETH is set for the ‘moon shot’. This optimism is based on the recent price performance and the overall market sentiment. However, traders should be cautious and consider the potential risks associated with the current market conditions. The incident involving the trader who lost $2 million serves as a reminder of the importance of thorough market analysis and risk management strategies in cryptocurrency trading.