A crypto trader has shocked many people after turning a $125,000 Ethereum (ETH-USD) bet into a fortune worth nearly $43 million at its peak. Even after a market downturn cut into gains, the investor walked away with almost $7 million in profit.
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Trader Builds Massive ETH Position
The story began when the trader deposited $125,000 into the decentralized exchange Hyperliquid. Instead of cashing out after making his first profits, he reinvested everything back into his bet that Ethereum’s price would rise.
In trading, this is called a “long position,” which means you are wagering that the asset will go up in value. Each time he earned a gain, he added those profits to his position, so the amount he had riding on Ethereum kept getting bigger. Over the course of four months, this snowball effect grew into a staggering $303 million long position on Ethereum.
According to blockchain data firm Lookonchain, this aggressive approach lifted the original stake to $43 million at its peak before the market pulled back. The trader later closed his position and walked away with $6.86 million in profit, a return of 55 times the starting investment.
Ethereum Whales Begin Taking Profits
The trade comes as other large Ethereum investors, often called whales, are locking in gains. Last Friday, U.S. spot Ethereum ETFs recorded $59 million in outflows, snapping a streak of positive inflows. This drastic change made traders more cautious, leading several whales to sell millions of dollars’ worth of Ethereum.
For instance, one top-100 trader wallet labeled “0x806” sold more than $9.7 million in Ethereum, while another, “0x34f,” unloaded $1.29 million. These moves suggest that big holders expect a period of profit-taking and possible price consolidation.
Market Faces Broader Pressures
Ethereum’s strong rally has made it a target for traders looking to cash in. Analysts warn that while the long-term outlook remains solid, the short-term could see volatility as leveraged positions increase risk.
Ryan Lee, chief analyst at Bitget, said Ethereum and Bitcoin remain “vulnerable to sharper swings on any shift in sentiment.” He pointed to the U.S. Federal Reserve as the biggest near-term risk. Any sign of hawkishness or delays in expected rate cuts could hit crypto prices hard.
Moreover, the markets currently expect the Fed to keep interest rates steady at its next meeting on September 17. CME’s (CME) FedWatch tool shows an 82% chance of no change. However, traders are staying cautious because changes in the wider economy still guide the direction of crypto markets.
At the time of writing, Ethereum is sitting at $4,314.72.
