Ethereum News Today: Ethereum Whales Buy the Dip, but Leverage Leaves $327M in Liquidations

Ethereum (ETH) traders are closely monitoring the activities of a high-profile whale identified as "Buddy," who recently increased their long position by 350 ETH within an 8-hour window. However, the position is now marked by an unrealized loss of 195%, signaling heightened volatility in the market. This development comes amid a broader slump in crypto assets, with the Crypto Fear and Greed Index dropping to 10, a level classified as "Extreme Fear".

The whale's leveraged bets on ETH have drawn attention as part of a pattern of aggressive trading by institutional players. Earlier this week, a whale known for a "100% Win Rate" opened a 25x leveraged long position in Ethereum, amassing 1,976.5634 ETH worth over $6.7 million. The position currently sits in a floating profit, with a liquidation price of $3,358.40. Separately, another whale deposited 8 million USDC on HyperLiquid to open a 25x leveraged ETH position, totaling 10,695 ETH valued at $37 million.

These leveraged positions highlight the risks inherent in high-leverage trading, particularly during periods of market stress. For instance, a whale who held a 25x leveraged ETH position reported a floating loss of $1.825 million, while another sold 5,772 ETH during a trading session, incurring a $7.74 million loss after a two-month holding period. The "Buddy" whale's 195% unrealized loss underscores the fragility of leveraged positions as ETH prices fluctuate.

The market context has worsened in recent days. The U.S. Ethereum spot ETF experienced a net outflow of $1.779 billion in the last 24 hours, while the Bitcoin spot ETF saw a $492 million outflow according to market data. On-chain data also reveals broader liquidation trends: over $327 million in crypto positions were liquidated, driven largely by longs. Meanwhile, Ethereum ETFs have faced four consecutive days of net outflows, reflecting waning institutional confidence.

The "Buddy" whale's actions are part of a larger narrative of whale activity. For example, a group known as "7 Siblings" recently accumulated 49,200 ETH during a price dip, though their position now carries an $18.97 million unrealized loss. These moves suggest that while some whales are "buying the dip," others are retreating amid macroeconomic uncertainty.