Notorious Hyperliquid Whale Is Back With Risky Ethereum Bet, Key Price Levels to Watch

A popular Hyperiquid crypto whale, James Wynn, is back to the market, placing risky bets with Ethereum (ETH).

The move has raised eyebrows among crypto market watchers as it comes at a time when the ETH price is finding stability.

For now, Ethereum has increased slightly over the last 24 hours as the Hyperliquid whale sustained his massive transaction trend.

Hyperliquid Crypto Whale Betting on Ethereum

As revealed by the onchain data analytics provider Lookonchain, James Wynn recently made a bold ETH trade. Wynn is well recognized in the crypto space for his high-risk, high-leverage trading strategies.

In his latest comeback, Wynn claimed 19,206.72 USDC in referral rewards. He then proceeded to use these funds to open a 25x leveraged long position on ETH via the Hyperliquid platform.

Wynn going long on Ethereum means he is betting that the price will increase significantly from the current levels. The 25x leverage indicates Wynn is borrowing 25 times the amount of his initial capital to amplify his position.

This means that the $19,206.72 worth of USDC will allow him to control a position worth approximately $480,168.

The ETH liquidation price spotlighted by Lookonchain is at $4,152.8. Thus, the Hyperliquid whale could lose its entire margin if the price of ETH falls below $4,152.8.

On the other hand, 25x leverage would amplify his profit if the ETH price climbs higher.

Essentially, leverage positions magnify both potential profits and losses. A small price movement in ETH could either result in gains or wipe out positions entirely.

Hyperliquid Historical Liquidation from Wynn’s Trades

James Wynn is recognized in the crypto community for his bold, high-leverage trades, primarily on the decentralized exchange Hyperliquid. His trading style is characterized by extreme leverage.

In the past, Wynn has openly admitted to not following conventional risk management. He even described his trading as similar to gambling.

While Wynn amassed huge gains, he has also faced outstanding losses. In May, Wynn generated a return of $4.13 million from selling his 126,116 Hyperliquid (HYPE) tokens.

He initially acquired the tokens on May 9 and May 12 for a total of $3.13 million, at an average price of $24.84.

Days after selling his HYPE tokens, Wynn opened a 945 BTC long position worth $99.5 million with 40x leverage on May 30, recording a $99.3 million liquidation loss.

Crypto trader Wynn also lost $100 million in BTC liquidations back in June.

Is Ethereum to $5,000 Possible?

Despite the recent industry downtrends, market participants continue to express optimistic sentiments about the price of Ethereum hitting the $5,000 mark.

In an X post, OKX partner Ted Pillows highlighted some key ETH price points to watch. He noted that ETH is holding a critical support at $4,219.

This level is important as it could determine the next price direction for the top altcoin.

According to Ted, ETH would likely recover and move to $4,474 resistance if the $4,219 support holds. Ted believes a dip in liquidity of around $4,000 will occur before the price rallies higher.

“Ethereum to $5,000 is imminent,” he said in a post on X.

At press time, the Ethereum price is valued at $4,311, representing a slight increase of 0.8% over the past 24 hours. However, ETH trading volume is still down 8% on the daily chart.

The recent surge in inflows into the ETH exchange-traded funds (ETFs) has added to the optimistic sentiments surrounding the leading altcoin.

Some analysts floated long-term price projections of $6,000 to $15,000 for ETH.