Ethereum News Today: Ethereum and Solana Whale Closes Long Positions, Opens $55M Short Bet

A prominent whale wallet, 0xd85d, has recently shifted from a bullish to a bearish stance on Ethereum (ETH) and Solana (SOL) following significant losses on long positions. On-chain analytics firm Lookonchain reported that the whale closed its long ETH and SOL positions around five hours ago, incurring losses of $5.33 million and $3.72 million, respectively [1]. This move marks a sharp departure from the whale’s earlier strategy of holding large bullish exposure, and signals a potential recalibration of market expectations [1].

Following the closure of these losing positions, the whale opened two large short positions on ETH and SOL. The whale shorted 10,491 ETH, valued at approximately $38.7 million, and 100,000 SOL, worth about $16.86 million. The combined short exposure amounts to over $55 million, reinforcing the bearish sentiment [1]. These high-value trades are seen as a clear indication of the whale’s belief that both assets may face downward pressure in the near term.

The sudden bearish flip has sparked attention within the crypto community, with analysts noting that whale behavior is often considered a leading indicator of broader market trends. While this shift does not guarantee price declines for ETH and SOL, it does raise concerns about short-term volatility and investor confidence. Traders are advised to remain cautious and monitor further whale activity and market signals before making high-risk decisions [1].

The Solana Fear and Greed Index, which assesses market psychology based on price trends and trader sentiment, has also reflected a growing bearish tendency in recent days [2]. This aligns with the whale’s actions, suggesting that uncertainty is increasing among market participants. Despite this, Ethereum has seen large outflows from centralized exchanges, a typically bullish sign, indicating that market optimism remains intact but is being tempered by strategic repositioning [3].

The bearish shift by 0xd85d also comes amid a broader trend of capital rotation into smaller altcoins and meme tokens. For example, interest in projects like TOKEN6900—inspired by the SPX6900 trend—has surged, showing traders are exploring alternative opportunities amid uncertainty in larger markets [5]. This trend underscores the dynamic and often unpredictable nature of crypto sentiment shifts, especially in response to whale activity.

While some analysts maintain a bullish outlook for Ethereum, citing institutional inflows and potential ETF developments, the whale’s bearish turn highlights that such optimism is not reflected in current on-chain behavior [6]. Price predictions suggesting ETH could reach $4,000 are contingent on broader market stability and the emergence of bullish catalysts, which remain uncertain [6].

The market is now closely watching for further movements from large holders and institutional investors to determine whether the bearish trend will continue or reverse. Given the influence of whale activity on market dynamics, the coming weeks will likely provide more clarity on the future direction of ETH and SOL.

Source:

[1] Lookonchain - X https://x.com/lookonchain/status/1953275027769733616

[2] CFGI.io https://cfgi.io/solana-fear-greed-index/

[3] Facebook https://www.facebook.com/groups/2373610969516780/posts/2834731230071416/

[5] CoinCentral https://coincentral.com/xrp-price-prediction-bears-fear-crash-to-2-as-capital-rotates-into-alternative-altcoins/

[6] CryptoDnes.bg https://cryptodnes.bg/en/author/alejandroar/