A trader identified by wallet address 0xb04 has implemented a high-risk strategy, increasing their capital from $20 million to $180 million on the AAVE platform, capturing analysts' attention.
Trader's AAVE Strategy
The trader began with a capital of $20 million and leveraged it into $180 million worth of wrapped Ethereum (wETH) on AAVE through repeated looping. This not only provided long exposure to Ethereum but also potential staking yields with an estimated annual yield of 4% from wETH deposits while borrowing $170 million at about 3% interest.
Ethereum Price Volatility
On July 29, 2025, Ethereum's price dropped by 1.84%, closing at $3,757, indicating increasing bearish pressure after failing to maintain above the $3,800 mark, now acting as a key resistance zone. The price may face greater corrections if support levels are not reached.
Market Outlook
If sellers maintain control, the support level of $3,700 might be retested. A breakdown beneath this level could lead to declines towards $3,500. However, if bulls reclaim $3,800 and turn it into support, target levels may rise to $4,000 and $4,300.
The whale's leveraged position exemplifies the high-risk profile of DeFi platforms amid declining market conditions, highlighting general risk aversion among market participants.
