- Whale trades stir ETH volatility, with major liquidations adding selling pressure and increasing bearish sentiment.
- Ethereum struggles as 180-day dormant circulation rises, signaling long-term holder sell-offs amid a risk-off market phase.
- Hyperliquid lost $4M as a whale’s strategic liquidation shifted risk, exposing the dangers of leveraged trading.
Ethereum’s price action remains highly volatile as whale movements influence the market. According to lookonchain, a massive whale recently closed a position of 160,234 ETH, valued at approximately $306.85 million. Moreover, another whale opened a substantial long position, holding 73,076 ETH worth $138.75 million. Within just ten minutes, the position gained $1 million. However, the liquidation price stands at $1,854.4, highlighting the risk involved.
Whale Activity and Market Impact
Besides these large trades, a whale deposited an additional 1.735 million USDC on Hyperliquid to long Bitcoin. Such strategic moves often indicate market confidence. However, Ethereum has faced struggles amid a broader market downturn. Over the past 24 hours, Ethereum long positions worth $110 million have been liquidated.
Additionally, negative funding rates across major exchanges suggest that short sellers are gaining control. This shift amplifies bearish sentiment in the Ethereum market. More importantly, an increase in 180-day dormant circulation points to long-term holders selling off their ETH. This spike aligns with a risk-off environment, indicating a potential distribution phase. As more holders exit, selling pressure increases, pushing ETH prices downward.
Hyperliquid Faces Major Loss Due to Whale Liquidation
Consequently, decentralized exchange Hyperliquid suffered a massive $4 million loss. A whale opened a $285 million long position backed by just $14 million in collateral. As expected, a liquidation level was established. Initially, this was set at $1,800. However, the whale strategically withdrew collateral, shifting the liquidation price to $1,930.
When Ethereum surged past this level, the position was liquidated, transferring the debt to Hyperliquid’s liquidity pool. The platform absorbed the entire loss, while the whale remained unaffected. This event underscores the high-risk nature of leveraged trading and its potential impact on exchanges.
Technical Analysis and Future Outlook
At the moment, Ethereum is trading at $1,883.6, up 0.61%. With support close to $1,800 and resistance at $2,082.5, the price forms a descending triangle. Ethereum might rise to $2,544.2 if it breaks above $2,082.5. Failure to maintain over $1,800 can lead to more drops.
Moreover, the MACD indicator shows bearish momentum, with the MACD line at -56.4 and the signal line at -62.7. A slight histogram uptick suggests reduced bearish pressure. However, the On-Balance Volume remains negative at -217.19K, indicating weak buying demand. Furthermore, declining volume signals uncertainty. The price continues forming lower highs, confirming selling pressure.
