Ethereum News Today: Ethereum Whales Boost Shorts to $77M as Price Falls 5%

Large Ethereum holders, commonly referred to as “whales,” have intensified bearish activity in recent trading sessions, significantly expanding short positions. A prominent whale, known for a 75% win rate, added 20,000 ETH to its short position using 20x leverage, at an entry price of $3,843. The position’s value is estimated between $75 and $77 million, with an unrealized profit of $1.12 million [4]. This move is part of a broader trend, as another whale increased their short position to $40.25 million, achieving a floating profit of over $3.24 million [1].

The bearish sentiment is evident across multiple assets, with the same whale expanding short positions in XRP and Solana (SOL), adding $18 million in notional value to their ETH short. These actions have contributed to Ethereum’s nearly 5% drop, following large-scale selling from influential market players. For instance, Arthur Hayes, the former CEO of BitMEX, sold $13.3 million worth of ETH, Ethena (ENA), and Pepe (PEPE) over six hours, with a significant portion of the assets moving to centralized exchanges such as Binance and Cumberland DRW [4].

The increased shorting activity is not limited to individual whales. A notable wallet with the address “0x3c9E” transferred 26,182 ETH—valued at $93.66 million—to multiple exchanges within 48 hours, signaling increased liquidity and potential bearish pressure [4]. These actions have coincided with broader market turbulence, as Ethereum’s price dropped below $3,800, despite some retail traders buying the dip amid signs of accumulation [5].

Despite these conflicting signals—such as one wallet receiving 16,496 ETH from Galaxy Digital and another acquiring 14,933 ETH for $58.5 million—the net effect of whale activity remains bearish. The dominance of short positions and the high volume of ETH being moved to exchanges suggest that the market is still vulnerable to further downward pressure, particularly if more whales follow the trend [4].

The bearish bias is also reflected in broader market positioning. Combined short positions on both BTC and ETH have reached $168 million, with Ethereum short positions alone accounting for nearly $40 million. These figures indicate a substantial shift in market positioning, as traders increasingly hedge against potential price declines. While Ethereum’s underlying strength is still evident—new addresses surged to nearly 257,000 in a single day—the growing bearish sentiment among large holders remains a key factor to monitor [6].

Large short positions can create a self-fulfilling prophecy, as traders interpret bearish signals and adjust their strategies accordingly. This is particularly relevant in the context of Ethereum, where whale actions have historically led to significant market volatility. Market participants will be closely watching for further developments to assess whether this trend is a short-term correction or the start of a more prolonged bearish phase [4].

Source:

[1] Whale Increases $18 Million ETH Short, Expands XRP and ... (https://blockchain.news/flashnews/whale-increases-18-million-eth-short-expands-xrp-and-sol-short-positions-real-time-trading-actions-and-crypto-market-impact)

[2] ETH Whale Increases Short Position: $7.5M Unrealized ... (https://blockchain.news/flashnews/eth-whale-increases-short-position-7-5m-unrealized-profit-as-eth-price-drops-eth-trading-insights)

[3] Insider Whale Expands ETH Short Position to $40M (https://www.bitget.com/news/detail/12560604891677)

[4] Arthur Hayes Sells $13.3M in ETH, ENA, and PEPE Amid ... (https://www.ainvest.com/news/ethereum-news-today-arthur-hayes-sells-13-3m-eth-ena-pepe-market-downturn-2508/)

[5] Ethereum (ETH) Price: Why Retail Traders Are Buying ... (https://coincentral.com/ethereum-eth-price-why-retail-traders-are-buying-while-whales-step-back/)

[6] Ethereum New Addresses Surge To Nearly 257K In A Day ... (https://www.mitrade.com/insights/news/live-news/article-3-1007362-20250802)