Ethereum News Today: Ethereum Whale's $16M Bet Could Spark Short Squeeze and Bullish Rebound

A major Ethereum whale has placed a highly leveraged $16.35 million long position on Ether (ETH), betting that the current dip is temporary and that the price will rebound to the $4,300–$4,360 range. Entered at $4,229.83 per ETH, the position is already showing slight gains as ETH trades near $4,240. A 1% price increase would generate over $163,000 in profit, while reaching $4,336 could unlock approximately $450,000 in unrealized gains. The whale’s timing aligns with fresh liquidation heatmaps that show a dense cluster of short liquidations in the $4,300–$4,360 range, potentially creating liquidity “magnets” that could attract market makers and drive price action upward. However, a 4.34% drop would trigger a liquidation, erasing the position’s margin entirely [1].

The broader technical context suggests ETH is consolidating above its 20-day exponential moving average (EMA), a key support level that has historically underpinned the uptrend since July. This support now coincides with the lower boundary of a developing falling wedge pattern on the daily chart. Analysts view this as a bullish reversal setup, strengthening the case for the whale’s long bet. If the pattern completes, ETH could target $4,750—a level 13% above current prices. A breakdown below $4,140, however, would invalidate the technical case [1].

At a broader time frame, Ethereum is undergoing what analysts describe as a significant weekly retest. The weekly chart shows ETH transforming its previous resistance zone—$3,900–$4,000—into support. This shift, according to DIY Investing, could be a catalyst for a move toward $8,000, assuming the retest holds. The current ETH price action reflects a tug-of-war between institutional shorting activity and retail optimism, with both sides preparing for a potential price breakout [1].

On the institutional front, large financial players are increasing their short exposure in Ethereum, according to market analyst Crypto Rover. This growing short interest is seen as potential fuel for a short squeeze scenario, particularly if ETH moves into key resistance levels where short liquidation clusters exist. Traders are advised to monitor CFTC Commitments of Traders data for CME Ether futures, as well as exchange-level funding rates and open interest, to assess the likelihood of a squeeze. A short squeeze typically occurs when short-sellers are forced to cover their positions, pushing the price upward in a self-reinforcing cycle [4].

Ethereum ETFs, meanwhile, have experienced significant outflows, with $197 million in withdrawals recorded in a single day—the second-highest on record. This exodus coincided with a record surge in unstaking ETH requests, with $3.9 billion in pending withdrawals. Analyst Timothy Misir from BRN noted that these outflows and unstaking activity are pressuring near-term sentiment, adding to concerns about a potential profit-taking phase after ETH’s 66% surge over the past year. Misir identified $4,400 as a critical support level, with a break below it potentially signaling further bearish momentum [3].