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Trader Loses Millions in Classic Ethereum FOMO Cycle

Trader Loses Millions in Classic Ethereum FOMO Cycle

CoinomediaCoinomedia2025/04/23 23:44
By:Isolde VerneIsolde Verne

An Ethereum trader lost millions by buying high, selling low, and rebuying higher, showcasing the risks of emotional trading.Emotional Trading Leads to Massive ETH LossesBuying Back In—At a Higher PriceLessons for Crypto Investors

  • Trader bought ETH at $3,559 and sold at a 56% loss
  • Re-entered market by rebuying ETH at $1,792
  • Example of emotional, FOMO-driven crypto trading

Emotional Trading Leads to Massive ETH Losses

In one of the most painful reminders of why emotion and crypto don’t mix, a trader has made headlines for losing millions in a textbook case of FOMO (fear of missing out) trading. Six months ago, the trader purchased 1,805 ETH for a hefty $6.42 million when Ethereum was priced at $3,559.

As prices dipped, panic took over. Just two weeks ago, with ETH around $1,333, he sold off his entire position, locking in a staggering 56% loss worth around $3.6 million.

Buying Back In—At a Higher Price

But the story didn’t end there. After ETH rebounded, the trader jumped back in—this time acquiring 1,734 ETH for $3.11 million at $1,792 each. While he now holds slightly less ETH, he also re-entered the market at a significantly higher price than where he exited.

This behavior reflects a common pattern among retail traders: buying at market highs driven by hype, selling during dips out of fear, and then rebuying when prices rise again—all resulting in net losses.

Peak FOMO trader: buy high, sell low, then buy back even higher.

6 months ago, he bought 1,805 $ETH for $6.42M at $3,559.

2 weeks ago, he panic sold at a $3.6M(-56%) loss.

Today, after the $ETH price rose, he bought back 1,734 $ETH ($3.11M) at $1,792. https://t.co/WDgd5MmnHS pic.twitter.com/J6IWisgKhr

— Lookonchain (@lookonchain) April 23, 2025

Lessons for Crypto Investors

This case is a cautionary tale about emotional investing. Success in the crypto market often requires patience, risk management, and a disciplined strategy—not impulsive reactions to price swings.

Long-term holders and seasoned traders emphasize the importance of having a plan, sticking to it, and avoiding the herd mentality that often drives poor decisions during market volatility.

Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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