A trader who bet against the second-largest digital asset by market cap was liquidated as Ethereum (ETH) shot past the $4,200 price tag.
In a new thread on the social media platform X, the crypto analytics firm Lookonchain notes that with the top altcoin breaking the $4,200 barrier, one trader was hit by a series of liquidations after missing the mark on short Ethereum positions, leaving them with millions of dollars in losses.
A short position in trading is when someone bets that the price of an asset will go down to profit from the decline.
Lookonchain details how trader 0xcB92 shorted ETH and went from at one point being able to withdraw millions of dollars in profits to being deep in the red.
“Trader 0xcB92 is no longer smart. Once again, he didn’t take profits when he was up $4.25 million – and is now on the edge of liquidation.
Liq. price: $3,724.15. He’s wiped out all the gains from his first three trades… and is now $2.34 million in the red on principal…
Trader 0xcB92 sold another 1,451 ETH for 5.53 million USDC over the past 18 hours – then deposited the 5.53 million USDC into Hyperliquid to avoid liquidation. New liquidation price: $4,015.86
Total losses so far: $11.62 million.”
Things went from bad to worse for the trader as they eventually ended up becoming fully liquidated.
“After ETH broke above $4,200, trader 0xcB92 was fully liquidated, with total losses exceeding $15.85 million.”
The market intelligence platform highlights another deep-pocketed investor who blundered trading ETH, dumping their stash after panic selling the token during a bottom, only to rebuy at a higher price later.
“About a week ago, whale 0x3c9E panic sold 38,582 ETH ($136.89 million) at $3,548 amid the drop. Today, as ETH rebounds, they bought back 1,800 ETH ($7.22 million) at a much higher price of $4,010.”
Ethereum is trading for $4,260 at time of writing, a 6.4% increase on the day.
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