A trader opened a high-risk long bet on Ethereum (CRYPTO: ETH) just before the cryptocurrency’s dramatic Wednesday surge, locking in paper gains of over $6 million.
Perfectly-Timed ETH Trade Raises Eyebrows
The whale initiated a 4x leveraged long position in ETH on the decentralized perpetual trading platform Hyperliquid at an entry price of $1,936, according to Lookonchain.
Shortly after they opened the position, ETH started rallying sharply. Since then, the coin has surged nearly 16%, netting the whale an unrealized profit of $6.192 million.
“What a coincidence,” Lookonchain said, expressing skepticism over the timing of the trade.
Benzinga Note: Leverage trading allows cryptocurrency traders to open larger positions using borrowed capital. While it can potentially amplify profits, it also significantly increases the risk of substantial losses due to the volatile nature of cryptocurrencies.
Other ETH trades also drew scrutiny.
In the days leading up to Wednesday, a whale acquired 10,657 ETH valued at approximately $20 million, with half of the total purchased on Tuesday. The investor went on to stake the ETH.
Transaction data from Arkham Intelligence showed sequential large inflows from Kraken hot wallet, followed by deposits to the Ethereum Beacon Chain contract
Market Takes Note of Trump’s Crypto-Supportive Stance
Ethereum soared to levels not seen since May 12, with 24-hour trading volume exploding by 408%. The asset recorded roughly $1.13 billion in liquidations over the last 24 hours, with short liquidations amounting to $1.02 billion, according to Coinglass.
Growing optimism over the passage of the CLARITY Act energized the market, while President Donald Trump’s commitment to preserving U.S. leadership in Bitcoin (CRYPTO: BTC) and other cryptocurrencies added to the momentum.
He added that the U.S. is currently the “hottest country” in the world and urged Congress to take the next step by passing the CLARITY Act.
Price Action: At the time of writing, ETH was exchanging hands at $2,244.57, up 17.50% in the last 24 hours, according to data from Benzinga Pro.
Photo: Zakharchuk on Shutterstock
