Trader’s $43M Ethereum Fortune Plummets to $770K in Market Retrace - Here’s What Went Wrong

Another day, another crypto millionaire learns the hard way that leverage cuts both ways.

The Unraveling

One trader watched $42 million evaporate as Ethereum pulled back from recent highs—proof that even paper fortunes can turn to dust when markets shift. The portfolio nosedived from eight figures to just $770,000, all while ETH prices retraced.

Margin Calls and Market Realities

Excessive leverage magnified the damage as positions got liquidated faster than you can say 'decentralized finance.' No stop-loss could save this portfolio when the dominoes started falling.

Welcome to crypto—where today's genius is tomorrow's cautionary tale. Just another reminder that in markets ruled by volatility, even the biggest whales can end up beached.

$42 Million Erased As Ethereum Price Crash Hits Star Trader 

In one of the most dramatic downturns in recent trading history, a legendary trader who built a reputation for turning $125,000 into $43 million has just witnessed a devastating loss. Blockchain analytics platform Lookonchain reports that the trader reopened a long position on Ethereum, only to be caught in the latest price crash. The sharp correction had wiped out his leverage, triggering liquidations that erased $6.22 million and left his account with just $771,000. 

Until recently, the trader had built a strong portfolio, capitalizing on the recent Ethereum price rally through a series of well-timed positions. Just days ago, he exited a massive 66,749 ETH long worth $303 million, securing $6.86 million in profit which equates to a 55x gain on his initial capital of $125,000. At the peak of his run, his total equity had exceeded $43 million, a 344x increase from where he started. 

The week’s crash, however, unraveled nearly all of the trader’s progress. In just two days, Lookonchain reports that four months of gains were erased, leaving him with a fraction of where he once stood. The decline from his $43 million peak underscores a much deeper collapse—one worth approximately $42.2 million. 

For a trader who came close to pulling off one of the most successful ETH trades this year, the dramatic reversal seen in the ethereum price highlights the brutal volatility of the market. It also underscores the dangers of holding overleveraged positions and the risk of failing to secure gains while market prices were still climbing. 

Analyst Says Ethereum Pullback Is Healthy

The Ethereum price saw a 10% decline this week, triggering a wave of liquidations and broad market sell-offs. However, analysts suggest that ETH’s retracement may not be a cause for panic. Mark Newton, a technical analyst and managing director/global head of technology strategy at Fundstrat, noted that Ethereum is undergoing what he considers a healthy pullback. 

In an email to Fundstrat’s CIO and Head of Research, Thomas Lee, Newton highlighted that ETH is consolidating around the $4,075 – $4,150 range, which he views as a favorable risk-reward zone for midweek. The technical analyst confirmed that the recent Ethereum price decline is consistent with Elliott Wave patterns and should not be interpreted as the end of Ethereum’s bullish momentum.

Instead, he believes that after this brief correction, Ethereum could rise toward a new all-time high NEAR $5,100. Based on this bullish thesis, the retracement represents a temporary cooling phase rather than the beginning of a prolonged downturn.