Ethereum Price on the Brisk as Hyperliquid Trader Makes $86M Profit

Ethereum’s price has plummeted over 53% from its 2024 peak, erasing $255 billion in market capitalization. The drop saw Ethereum’s valuation fall from $482 billion to $227 billion, triggering widespread concerns among investors.

Ethereum’s Struggles Continue

On Monday, Standard Chartered analysts slashed their ETH price target from $10,000 to $4,000, citing a structural decline in the network. The percentage of total Ethereum supply in profit has now fallen to 47.6%, the lowest level since October 2023, according to Santiment data. Ethereum’s realized loss has also hit its lowest point in nearly two years, further intensifying bearish sentiment.

A Winning Bet on Hyperliquid

Despite the downturn, not everyone is losing money. CoinGlass data reveals that a trader on Hyperliquid managed to secure an $86 million profit by shorting Ethereum. The trader placed a $143 million short position on March 3, when ETH was valued at $3,000.

By utilizing 25x leverage, the trader maximized gains as Ethereum tumbled to $1,878 on Tuesday. The funding fee for the trade was $3.13 million, with an initial margin of $5.76 million. However, the trader’s position faces liquidation if Ethereum rebounds to $3,194.

Meanwhile, another trader suffered a $5.21 million loss after betting long on Ethereum. This trader invested in 18.6 ETH with 20x leverage. His trade is at risk of liquidation if ETH plunges to $1,725.

Ethereum’s Bearish Technical Outlook

Ethereum’s technical indicators suggest further downside potential. The price remains below a crucial support level at $2,135, which previously served as the neckline for a triple-top pattern near $4,000.

The 50-day and 20-day moving averages formed a death cross in February, signaling bearish momentum. Additionally, Ethereum is forming a bearish pennant pattern, consisting of a steep vertical drop followed by a symmetrical triangle. With the pattern nearing its confluence point, a breakdown could send ETH toward the psychological level of $1,500, approximately 20% below its current price.

As Ethereum navigates turbulent waters, traders continue to face both immense risks and opportunities. While some capitalize on market volatility, others are caught on the wrong side of the trade, underscoring the unpredictable nature of the crypto markets.