Swing trader WETH liquidation: from unrealized profit of 2.87 million to a net gain of only 30,000

Recently, the on-chain trader nemorino.eth’s trading experience has attracted attention. This is a typical swing trading case — seemingly perfect entry timing, but a fatal mistake at the most critical moment. According to on-chain data monitoring, this trader’s story is worth deep reflection for all swing traders.

Aggressive Position Building Cycle

Between late 2024 and early 2025, this trader bought 9,043 WETH (Wrapped Ethereum) at an average price of $3,085. This scale and strategy indicate a clear bullish outlook on the market. As one of the most important derivatives in the Ethereum ecosystem, WETH has ample liquidity, making it suitable for medium- and short-term swing trading.

From Peak to Drop

In early 2025, this position reached its peak — unrealized gains once hit $2.87 million. This number would excite any trader, and it was the moment to test trading discipline. Unfortunately, the trader did not take profits at the high and chose to hold on.

Passive Selling During the Selloff

As the price started to decline, the situation quickly worsened. During the downturn, the trader had to sell 3,000 WETH, ending with only $30,000 in profit — a stark contrast to the $2.87 million unrealized gains. Even more frustrating, the account still held 4,089.83 WETH, which was about a $472,000 unrealized loss at that time.

Why Is Swing Trading So Difficult?

This case vividly demonstrates the core challenge of swing trading: execution. Having the right judgment, catching good opportunities, and a paper profit of 237 times — yet the final gains shrank to less than 1% of the target. This shows that swing trading requires not only market insight but also strict discipline in taking profits and cutting losses. The fleeting $2.87 million profit underscores the importance of timely profit realization. For all participants engaged in swing trading, this is a profound lesson.