Ethereum News Today: Ethereum Whales Face $311M in 24-Hour Long Liquidations as Leverage Pressures Mount

A major Ethereum whale linked to Huang Lizheng is currently facing liquidation risks on a long position of 3,875 ETH, with an unrealized loss of over $300,000 according to data from LookOnChain. The position, opened at an entry price of $3,191.89, now faces a liquidation threshold at $3,053.81. The wallet has suffered a weekly loss of $1.55 million and a monthly loss of $6.31 million.

Market liquidation data shows Ethereum traders are experiencing heightened volatility, with total liquidations reaching $311 million over the past 24 hours. Long positions accounted for $265 million of this, with the largest single liquidation valued at $5.68 million on Hyperliquid.

Meanwhile, a major Ethereum whale has added to its long exposure, with a 5x leveraged position now valued at $540 million. The position shows a floating loss of $20 million, highlighting the aggressive leverage used by some investors in the current market.

Risks to the Outlook

The ongoing volatility has led several Ethereum whales to take on leveraged long positions, often with little room for error. For instance, one whale linked to the Bitcoin OG label has expanded its ETH position to over 54,277 ETH, worth approximately $169 million. Another known whale, Anti-CZ, added to its long with a position of 62,156 ETH valued at around $194 million. These positions signal confidence in Ethereum's near-term direction but carry significant liquidation risks.

The recent market environment has seen whales and traders pushing capital into long ETH positions, especially after the Federal Reserve's hawkish rate cut announcement. However, high leverage levels are amplifying the potential for cascading liquidations. CryptoQuant data shows Ethereum's estimated leverage ratio on Binance has hit a record high of 0.579, indicating aggressive borrowing. Such levels can amplify losses during a market downturn, as small price movements may trigger mass liquidations.

The liquidation risk is not limited to large whale accounts. Smaller traders are also under pressure. Over 101,000 traders were liquidated in the past 24 hours, with long liquidations accounting for the majority of the losses. This activity highlights the fragility of leveraged positions in a market prone to sudden swings.

What This Means for Investors

For large holders and traders, the current situation emphasizes the importance of risk management. High leverage, while potentially profitable in rising markets, can turn volatile positions into sudden losses. Analysts are closely monitoring on-chain activity for signals of distress or panic selling. One trader recently executed a phased panic sell of 3,296 ETH, realizing a $292,000 profit after locking in losses over a week. This exit strategy highlights how even experienced traders are adapting to market pressures.

The broader Ethereum market remains weak. The asset has dropped nearly 8% since the Fed's announcement, with prices currently testing the $3,100 support level. Analysts are watching the $3,000–$3,100 zone closely, as a breakdown could trigger further declines. Ethereum's 24-hour drop of 4% underscores the market's vulnerability.

Investors are advised to remain cautious as the market stabilizes around key support levels. The RSI and MACD indicators suggest that selling pressure may be easing, but the spot market remains weak. Spot trading volume has declined, and stablecoin inflows have dropped significantly, further signaling a potential lack of buying support according to market analysis.

With leverage at historic levels and on-chain activity pointing to liquidity strains, the path forward for Ethereum is uncertain. While whales are placing big bets on a rebound, the risks of liquidation remain high. Market participants are advised to monitor on-chain data and liquidation signals closely to avoid being caught off guard by further price swings.