Ethereum News Today: Crypto Whales Open $41M 20x Leveraged ETH Long Amid Rising Institutional Exposure

A major crypto whale has initiated a high-leverage long position in Ethereum (ETH) and Bitcoin (BTC), with the combined value of the position exceeding $41 million. According to on-chain analytics, the whale executed a $3 million USDC deposit on Hyperliquid, a decentralized exchange, to establish a 20x leveraged long in ETH at a price of $3,799.87 per token. This move reflects a broader trend of institutional and large investors increasing exposure using extreme leverage—ranging from 15x to 40x—based on the belief that the market is undervalued [1].

The Ethereum position alone carries an unrealized profit of $41 million, showcasing a high-risk, high-reward strategy based on the expectation of continued price appreciation. At the same time, Bitcoin whale activity has also increased, with the number of entities holding 1,000+ BTC rising by 1.8% in one week. Both Bitcoin and Ethereum’s Accumulation Trend Scores have approached 1.0, their highest levels since November 2024 [2].

The surge in leveraged positions is supported by rising Bitcoin futures funding rates, which increased from 0.0069 to 0.0107 in July 2025. This suggests growing demand for leveraged exposure, particularly as investors anticipate a potential dovish pivot from the Federal Reserve. During this period, Bitcoin futures open interest reached $26.84 billion, underscoring stronger institutional involvement in the market [1].

Despite these bullish signals, the use of high leverage introduces notable risks. For instance, a 5% decline in Ethereum’s price would result in a 100% loss for the whale’s 20x leveraged position, potentially triggering a cascade of liquidations on platforms like Hyperliquid. While the exchange claims its liquidation engine is functioning, the broader market impact of such a scenario remains uncertain [1].

Market sentiment is currently skewed toward optimism, as reflected in the Crypto Fear and Greed Index, which reached 72—indicating a strong “greed” reading. Historically, such levels have often been followed by corrections, raising concerns about overbought conditions in the current environment [1].

For investors, navigating this environment requires a balanced approach. Strategies such as diversifying leverage sources across centralized and decentralized platforms, hedging with stablecoins like USDC, and monitoring whale activity through on-chain data are recommended to manage exposure [1].

In summary, the July 2025 market environment reflects a mix of institutional confidence and speculative overextension. While accumulation trends in both Bitcoin and Ethereum are strong, the widespread use of high leverage suggests the market may be vulnerable to sharp corrections. Investors are advised to treat whale activity as a signal rather than a direct trading cue, maintaining a cautious and diversified approach.

Source: [1] High-Leverage Whale Activity in ETH and BTC: A Signal of ... (https://www.ainvest.com/news/high-leverage-whale-activity-eth-btc-signal-institutional-confidence-warning-overextension-2508/)

[2] Ethereum Big Players Are Returning As Whale Wallets See ... (https://www.mitrade.com/insights/news/live-news/article-3-998894-20250731)