Ethereum price is at a critical point at $1800. As price has constantly been dropping there have been speculations that ETH may fall to $1200 by the end of month. While this speculation may not be liked by many, HyperLiquid traders are betting big on it. Short sellers have already made millions.
Usually traders lose money during Market crashes, however by short selling the market bears huge profits.
Truth to be told Ethereum has lost over 46% of its value from its peak in 2024 when it hit $4,006. That means $255 billion has been lost from its market value. It used to be worth $482 billion, but now it’s down to $227 billion.
Analysts at Standard Chartered even recently slashed their price target for this year from $10,000 to $4,000. They think Ethereum’s network is in a structural decline and might struggle to recover.
According to data from Santiment, only 47.6% of Ethereum holders are still in profit. This is the lowest level recorded since October 2023. The losses are stacking up, making this one of the worst downturns Ethereum has seen in nearly two years. Right now, investors are panicking, while traders are busy making risking bets, trying to guess where the price will go next.
Meanwhile, a mystery trader on HyperLiquid pulled off an $86 million profit by shorting Ethereum. On March 3, when Ethereum was trading at $3,000, the trader placed a $143 million short trade using 25x leverage. As Ethereum’s price nosedived to $1,878 on Tuesday, the trader cashed out in a big.
Their margin was $5.76 million, and they paid $3.13 million in fees, but the gamble paid off. If Ethereum climbs back to $3,194, though, their position will get wiped out.
However, not everyone was so lucky. Another trader bet on Ethereum going up and lost $5.21 million. This trader bought 18.6 ETH with 20x leverage, hoping for a rebound. Instead, prices kept falling. If Ethereum drops to $1,725, they’ll be completely liquidated, losing everything they put in.
Ethereum’s Freefall: Is $1,500 the Next Stop?
Looking at the daily charts on tradingview. The price has breaken structure to the downside and has slipped below a key $2,135 support level. This a bad sign for anyone hoping for a recovery.
Right now, ETH is trading at $1891, having lost 3% in value today from an intraday high of $1940.
There is also a bearish pennant pattern already formed on the 4-hour chart, if the price breaks out, it could push down further and target the nearst swing low which is at $1,500. That is roughy 20% from where it is now
Also Read: $500M BTC short-seller closes HyperLiquid trade, Eyes Melania
