Intense fluctuations in the digital currency market, influenced by global trade tensions, have once again revealed the risks of leveraged trading. An unidentified whale lost over $308 million in a leveraged Ethereum (ETH) buying position. The trader had bought 160,234 Ethereum with 50x leverage. The position was opened when the Ethereum price was $1,900 but got liquidated at $1,877. Hypurrscan data shows that the whale had converted all their Bitcoin (BTC) assets into Ethereum, leading to their capital loss. Ethereum has dropped over 53% from its peak of $4,100 in December 2024 to the $1,800 range. According to Bitfinex analysts, the main reasons for this downward trend include global economic issues and reduced developer activity on the Ethereum network due to high fees. In addition to fundamental issues, the cryptocurrency market is generally affected by the global trade war and new EU tariffs, putting selling pressure on high-risk assets like Ethereum. Moreover, exchange-traded funds (ETFs) for Ethereum in the US have seen capital outflows for the fourth consecutive week. Last week alone, $119 million exited these ETFs, adding further selling pressure on Ethereum prices. These developments indicate that the market remains unstable, and traders should exercise more caution when using high leverage. On the real-time digital currency price page, you can monitor the prices of all tokens and cryptocurrencies live and in real-time.
