The cryptocurrency community is abuzz as the mysterious trader known as the “Hyperliquid 50x ETH whale” returns, leveraging a new long position of 47,253 ETH at 20x. This move has reportedly netted the trader a profit of nearly $2 million, showcasing their ability to capitalize on market volatility.

Taking Advantage of Ethereum’s Price Decline

After a month of inactivity, the trader seized the opportunity presented by a sharp drop in Ethereum (ETH) prices. The long position was opened on Hyperliquid with 20x leverage, involving 47,253 ETH valued at approximately $70.86 million. The entry price for the position stood at $1,459, while the liquidation price was set at $1,391.

On April 7, the trader closed this long position at around 11:00 AM UTC, withdrawing $6.3 million back to Arbitrum after securing a profit of $1.87 million. On-chain data revealed that the position had previously peaked at a profit of $4.52 million before retracting within a few hours.

Ethereum Price Update

Ethereum has experienced a significant drop, declining by nearly 17% over the past 24 hours. At the time of writing, ETH is trading at $1,487, marking the first time it has dipped below $1,500 since March 2023. The cryptocurrency’s market capitalization has also fallen by over 18% due to this price movement.

Key Ethereum Price Metrics:

  • Current Price: $1,487
  • 24-Hour Decline: 17%
  • Market Cap Reduction: 18%

The Origins of the Hyperliquid 50x ETH Whale

The trader first gained notoriety on March 12 after opening a substantial long position of 175,000 ETH with 50x leverage, totaling approximately $340 million. This move caused significant turbulence, nearly triggering a market crash on the Hyperliquid platform.

Following the closure of 15,000 ETH from the position, the trader withdrew 17.09 million USDC in margin back to their address. However, the withdrawal prompted the platform to automatically liquidate the remaining 160,000 ETH. Hyperliquid’s vault absorbed the liquidation at $1,915 but faced a loss exceeding $4 million due to the sheer size of the liquidation.

Despite this setback, the trader still managed to secure a net profit of approximately $1.8 million. In response to these events, Hyperliquid implemented changes to its leverage policies, lowering the maximum leverage for Bitcoin (BTC) to 40x and Ethereum (ETH) to 25x.

Implications for Crypto Traders

The activities of the “Hyperliquid 50x ETH whale” highlight the risks and rewards associated with high-leverage trading in the cryptocurrency market. While such strategies can yield substantial profits, they also carry the potential for significant losses, particularly during volatile market conditions.

Tips for Trading Ethereum and Other Cryptocurrencies:

  • Understand Leverage: Trading with leverage amplifies both potential gains and risks. Beginners should start with lower leverage ratios to minimize exposure.
  • Monitor Market Trends: Stay informed about price movements and market sentiment to make informed trading decisions.
  • Set Stop-Loss Orders: Protect your investments by setting stop-loss levels to limit potential losses.
  • Risk Management: Never invest more than you can afford to lose, and diversify your portfolio to reduce risk.

The ongoing activities of prominent traders like the Hyperliquid ETH whale continue to influence market dynamics, offering valuable insights for investors looking to navigate the cryptocurrency landscape effectively.

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