A high-stakes crypto trader, known as a whale, has been wiped out after a reckless leveraged bet on Ethereum (ETH) went south. The trader lost over $308 million after their 50x leveraged long position on Ether was forcibly liquidated, exposing the dangers of excessive leverage in volatile markets.

Blockchain data from Hypurrscan reveals that the whale had taken a massive risk by leveraging 160,234 ETH, worth more than $308 million at the time. The position was opened when ETH was trading at $1,900, with a liquidation trigger set at $1,877—just a small dip away from their entry point. When ETH hit the liquidation price, the entire position was wiped out.

Adding to the misfortune, on-chain intelligence firm Lookonchain reported that the whale had previously converted all their Bitcoin holdings into this doomed Ether trade. This complete shift from BTC to ETH before the collapse magnified the scale of the loss.

The liquidation occurred amid heightened market instability, fueled by global economic uncertainties. A new wave of retaliatory tariffs from the European Union has increased concerns about a trade war, shaking both traditional and crypto markets.

Ethereum has struggled in recent months, plunging over 53% from its December 2024 peak above $4,100. Analysts at Bitfinex attribute this downtrend to macroeconomic uncertainty and a lack of new development activity on the Ethereum network, largely due to high transaction costs. They warn that ETH could see further declines toward the $1,800 level.

Meanwhile, US spot Ether ETFs have been bleeding capital, entering their fourth straight week of net outflows, with $119 million withdrawn last week alone. These ETF struggles, combined with broader market fears, continue to suppress ETH’s upside potential.