Crypto Trader Loses $58 Million as ETH/BTC Pair Hits Multi-Year Lows

Ethereum price continues to struggle around $2,500, with the ETH/BTC trading pair reaching its lowest level since April 2021.

Bhushan Akolkar By Bhushan Akolkar Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Crypto Trader Loses $58 Million as ETH/BTC Pair Hits Multi-Year Lows
Photo: Unsplash

Key Notes

  • The ETH/BTC pair drop resulted in significant losses for traders, including James Fickel, who faces a loss of over 23,000 ETH (approximately $58 million) on his long position.
  • In response to the falling ETH/BTC ratio, Fickel converted 4,418 ETH (valued at around $11.13 million) into 166 WBTC.
  • He currently has an outstanding debt of 1,116.6 WBTC (about $75.5 million) on Aave and has requested to withdraw 4,731 ETH from Lido, suggesting potential further swaps.

With Ethereum price ETH $1 833 24h volatility: 1.1% Market cap: $221.11 B Vol. 24h: $16.80 B continuing to underperform, the ETH/BTC pair has hit a multi-year low with crypto traders losing millions on this bet. ETH  price has continued to flirt around $2,500 levels failing to get enough catalyst for an upside move.

The latest data from Spot on Chain shows that crypto trader James Fickel is facing a significant loss of more than 23,000 ETH, having a value of $58 million, on his ETH/BTC long position. This is because this trading pair has hit the lowest levels since April 2021.

In the past two days, the ETH/BTC trading pair dropped to 0.037, while James Fickel adjusted his position by converting an additional 4,418 ETH (around $11.13 million) into 166 WBTC. This marks the second major cutdown of his trading position in just 37 days.

Currently, Fickel has an outstanding debt of 1,116.6 WBTC (approximately $75.5 million) on Aave and recently initiated a request to withdraw 4,731 ETH from Lido, indicating the likelihood of further swaps ahead.

Furthermore, crypto market analysts believe that the ETH price correction might not be entirely over. In his recent analysis, crypto analyst Benjamin Cowen drew parallels from the ETH price movements from the back years of 2016. He said that back in that year, Ethereum saw significant drops in April, August, and December of 2016.

In 2024, Ethereum has seen similar declines in April and August, suggesting, according to Cowen, a “decent chance” of another drop by year’s end, potentially reaching a low in December.

Crypto Trader Loses $58 Million as ETH/BTC Pair Hits Multi-Year Lows

Photo: TradingView

Ethereum Dominance Can Drop Further

Additionally, crypto analyst Benjamin Cowen also pointed out a substantial drop in Ethereum’s market dominance over the past year, falling from 18.85% to 13.36%. However, he stressed that identifying this trend early would have been beneficial as catching it now may leave investors at a disadvantage.

While narratives of “ETH is dead” may emerge, Cowen argues that this decline was anticipated. Should the downward trend persist, Cowen sees the next major support level for ETH dominance around 9-10%. He expects a potential rebound in 2025 but warns that further decline is possible in 2024.

Crypto Trader Loses $58 Million as ETH/BTC Pair Hits Multi-Year Lows

Photo: TradingView

On the other hand, the inflows into spot Ethereum ETF have been disappointing since its launch in July. Unlike the Bitcoin ETFs, the Ether ETFs have failed to garner enough institutional interest with daily inflows turning almost nill.

Furthermore, Ethereum ICO whales have been offloading their holdings at periodic intervals thereby hampering the market sentiment. Yesterday, an Ethereum ICO participant deposited nearly $8 million worth of ETH to the crypto exchange Kraken, waking up after four odd months.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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