An Ethereum whale recently incurred a significant financial loss of $40 million as they attempted to repay an existing loan using their Ethereum holdings. This came amidst a downturn in the cryptocurrency market, specifically during times of bearish sentiment and rising liquidations. The whale’s decision to sell assets at the current market price, likely after facing pressure due to declining network activity and high transaction fees, led to substantial losses that further exacerbated the situation. 80.91 million USDT was initially borrowed by the whale for Ethereum investment purposes, which yielded an initial purchase of $3,084 ETH at a peak in July 2024. However, the price drop forced the whale to sell off some of their holdings, contributing to the decline in value and further losses in their overall portfolio.