Crypto Trader Loses Over $2 Million in Just 5 Days as Market Slides

A major crypto investor has taken a significant hit amid the latest market downturn, losing more than $2 million in under a week after mistiming the market bottom. According to on-chain data from Arkham, the wallet labeled ‘0x1b57’ sold 5,570 ETH (worth about $19.56 million) within several hours, transferring the funds to Binance in three large transactions — 2,070 ETH ($7.26M), 2,000 ETH ($7.01M), and 1,500 ETH ($5.28M).

The same wallet had accumulated this Ethereum amount only five days earlier from Binance’s hot wallets but liquidated it after prices continued to decline, realizing an estimated $2.15 million loss. Despite trying to “catch the bottom,” the trader capitulated as market selling intensified.

The move reflects broader weakness across the crypto market, where investors are pulling capital amid growing risk aversion. Large-scale liquidations like this often amplify volatility, especially when whales exit their positions.

Ethereum has been one of the hardest-hit assets this week, dropping over 15% in seven days and trading around $3,508 at press time — more than 5% lower in the past 24 hours.

At current levels, ETH trades well below its 50-day simple moving average (SMA) of $4,094, signaling fading short-term momentum. The 200-day SMA near $3,316 is now the next key support; maintaining that level could preserve the broader bullish structure, while a breakdown may trigger a deeper correction.

Meanwhile, the 14-day Relative Strength Index (RSI) sits at 36.7, hovering near neutral territory. While not yet oversold, it suggests further downside potential before a relief rebound, though a sudden surge in volatility could also mark the point of selling exhaustion.