Whale Liquidates $7.44M ETH Long Position, Closing at a Loss of Around $114.4K

A major Ethereum whale closed a long position worth $7.44 million in ETH, resulting in a loss of approximately $114.4K according to reports. The liquidation marked one of the largest ETH trades of the week and raised questions about short-term market sentiment. The whale had been active in ETH trading since October 2025, using both long and short strategies.

The broader Ethereum market has seen mixed activity in early 2026. ETF-related flows have swung from inflows to outflows, with some large investors trimming exposure. Ethereum ETFs lost $98.5 million in net outflows in early January after a strong start to the year. This shift in fund flows has added short-term pressure to the ETH price.

On the same day the whale closed its position, a different Ethereum OG deposited $124 million worth of ETH to Bitstamp. The move was interpreted as profit-taking, as the whale had accumulated the tokens at an average price of $517 and sold them at a significant gain according to analysis.

Why Did This Happen?

Ethereum ETF activity has been a key driver of short-term sentiment. When flows turn negative, traders often reduce exposure, and this has been the case in early January. Ethereum ETF outflows hit $98.5 million, signaling a shift in institutional positioning. The whale's liquidation appears to align with this broader trend.

Large Ethereum holders have been using structured distribution strategies rather than panic selling. For example, the OG whale who sold $124 million in ETH over two days still holds 26,000 ETH, suggesting a long-term holding strategy rather than a total exit.

How Did Markets Respond?

Ethereum's price reacted to the ETF outflows and whale activity, with ETH sliding toward the $3,000 level. The coin lost a key support level, and analysts now watch the $3,020–$3,050 range as the next crucial support zone.

The broader crypto market also felt the pressure, with Bitcoin and XRP declining amid heightened volatility. Bitcoin traded near $90,000 after crossing below $90,000 earlier in the week. Traders remain cautious as options expiries and ETF flows continue to shape sentiment.

Despite the short-term pressure, Ethereum's fundamentals remain intact. Network activity is steady, and there are no signs of a panic-driven sell-off among long-term holders. Some investors are rotating capital into smaller, utility-focused projects like RTX, which is gaining traction in the DeFi space.

What Are Analysts Watching Next?

Analysts are closely monitoring Ethereum ETF flows as a key indicator of institutional sentiment. If inflows return, it could signal renewed confidence. If not, further outflows may continue to weigh on the price.

The approval of new Ethereum-related products also remains a focus. Morgan Stanley filed a spot Ethereum ETF that would distribute staking rewards to investors. If approved, the product could attract large inflows and further integrate ETH into traditional finance.

Whale behavior is another focal point. The recent actions of large holders suggest a market digesting gains rather than breaking down. On-chain data indicates reduced selling pressure from whales, especially on Binance. However, a sudden increase in large deposits could still test Ethereum's resilience.

Institutional adoption remains a key theme. Grayscale is preparing for options trading on its CoinDesk Crypto 5 ETF, which includes Ethereum as a major holding. If approved, this could mark one of the first multi-asset crypto ETFs in the U.S. to offer such a feature, boosting liquidity and investor access.

The next few weeks will be critical for Ethereum as ETF flows, whale activity, and institutional filings continue to shape the market. Traders are advised to monitor these factors closely for signs of directional bias and potential volatility.