Ethereum rally this month has given traders strong opportunities, by helping them boost portfolio values and unlock profitable exits. The subsequent downtrend, however, has proven equally damaging.
A trader once celebrated for turning a modest $125,000 deposit into tens of millions of dollars through aggressive Ethereum longs has seen their fortunes unravel dramatically.
Just three days ago, on-chain tracker Lookonchain reported that the trader had grown their accounts to $29.6 million within four months by compounding gains on Hyperliquid. The trader built a 66,749 ETH position, which was worth around $303 million. Two days ago, they closed those longs and managed to lock in $6.86 million in profit and ended with $6.99 million in account equity, down from a peak of $43 million.
However, the trader quickly re-entered the market and took another large long position on ETH.
The latest update by Lookonchain reveals that this decision ended in disaster as the market turned against them, liquidating $6.22 million in positions. Their account balance now stands at just $771,000, after wiping out nearly four months of gains in less than 48 hours.
While the liquidation serves as a cautionary tale, experts argue that the pullback could actually benefit disciplined dip-buyers.
Analyst and MN Trading founder Michal van de Poppe sees the current pullback in Ethereum as a prime opportunity for accumulation. He highlighted the $4,100-$4,200 zone as an “ideal area” for dip buying, and added that he expects at least a 10% bounce from this level. van de Poppe explained that volatility in Ethereum is likely to decrease soon, following which the altcoin could see a new accumulation phase transpire.
His analysis follows ETH’s sharp reversal from last week’s high above $4,750, a level not seen in months, which has since brought the price down to just over $4,200 at the time of writing. Van de Poppe reiterated his strategy with a reminder to “always buy the dip.”
Meanwhile, crypto market intelligence platform Kiyotaka observed Ethereum is currently sinking into a significant cluster of resting bids, with strong buy orders stacked all the way down to the $3,900 level. The order book heatmap depicts heavy accumulation zones beneath the current price, which indicates strong buyer interest if ETH continues its decline.