Ether Whales Bet Big Amid Geopolitical Tensions, Risking Millions

Ether whales have placed significant leveraged bets on the price recovery of the world’s second-largest cryptocurrency, despite escalating geopolitical tensions that have dampened investor risk appetite. One whale opened an Ether (ETH) long position of over $101 million with 25x leverage at an entry price of $2,247, according to blockchain data. This investor generated over $900,000 in unrealized profit but paid over $2.5 million in funding fees. The position is at risk of liquidation if Ether’s price falls below $2,196.

Hours later, another whale withdrew over $40 million worth of ETH from a major exchange, bringing the total ETH holdings to $112 million. This activity occurred as Ether slumped to a one-month low of $2,113 following US airstrikes on Iran’s nuclear sites. The US President called the attacks a “spectacular military success” and warned of further strikes unless Iran agreed to peace. The two countries have been engaged in strategic missile warfare since June 13, when Israel launched multiple strikes on Iran, marking its largest attack on the country since the Iran-Iraq War in the 1980s.

Most Bitcoin (BTC) and Ether traders anticipate a further correction following the latest escalation in the ongoing conflict. Around 64% of the industry’s most successful cryptocurrency traders are currently shorting the world’s two largest cryptocurrencies, while only 36% remain long. This shift in market positioning reflects the cautious sentiment among traders due to geopolitical tensions and monetary uncertainty.

According to a research analyst, most Ether investors are currently sidelined due to the ongoing geopolitical tensions and monetary uncertainty. The analyst noted that the market is in a “wait-and-see” stage, with options data indicating a neutral view. Binance researchers also attributed the price drop to geopolitical escalations, suggesting that a wider correction may still occur. They added that macro-driven pullbacks are being treated as opportunities rather than signs of a broader directional reversal.

On Tuesday, the staked Ether supply reached a new all-time high of over 35 million, signaling that Ether’s sellable supply is decreasing as investors prepare to hold their ETH to generate passive yield rather than sell at current prices. This trend indicates that despite the geopolitical tensions, some investors are confident in the long-term prospects of Ether and are positioning themselves to benefit from its potential price recovery.