Ethereum News Today: Ethereum Whales Rebuild Longs After $6M Loser Bets on ETF Rally

A major whale investor who took a large long position in Ethereum (ETH) over 30 times has lost more than $6 million since November 10. The investor, identified by on-chain data, has now opened a new ETH long position, signaling a renewed bet on the token despite recent volatility according to data. This development comes as Ethereum continues to hover above the $2,900 level, supported by ETF inflows and improving sentiment in the U.S. market as reported.

Ethereum price rose 2% in the last 24 hours, reaching $2,903, as the broader crypto market gained 1.24% according to analysis. U.S. spot Ethereum ETFs recorded $96.67 million in net inflows on November 24, with BlackRock's product contributing $92.6 million as detailed in reports. This marked the first inflow for BlackRock's Ethereum ETF in two weeks and followed an eight-day outflow streak according to on-chain data.

Whale activity has also been a key theme, with large holders accumulating as prices pull back. BitMine, a major wallet, added 69,822 ETH-worth over $200 million to its holdings last week and now controls 3.63 million ETH, or about 3% of the total supply according to on-chain analysis. Meanwhile, wallets holding 10,000 to 100,000 ETH increased their combined holdings by 440,000 ETH over the past seven days according to data.

The recent losses by a prominent ETH whale highlight the risks associated with high-leverage trading in a volatile market as highlighted by analysis. Despite their experience and resources, whales can face substantial losses from poor timing, emotional decision-making, and over-leveraging. In this case, the whale had a position that was over 30 times leveraged, and the sharp swings in ETH prices triggered a significant drawdown according to market analysis.

High-leverage trading is a common strategy among crypto whales, but it carries substantial risk. A sudden market correction can trigger forced liquidations, leading to large losses and increased selling pressure. This was evident in the latest seven-day period, during which $4.31 billion in net outflows were recorded for ETH futures according to data. However, inflows returned this week with $735.46 million entering the market over the past three days according to reports.

Investor Sentiment and Technical Outlook

The Coinbase Premium Index, a gauge of U.S. investor sentiment, has shown improvement, rising from -0.12 last week to -0.02 on Monday according to market data. While still negative, the increase suggests that U.S. investors are pricing Ethereum higher than they were a week ago. This aligns with the broader trend of increasing ETF inflows and growing interest in Ethereum among institutional and retail investors as indicated in reports.

From a technical perspective, Ethereum remains in a consolidation phase between $2,700 and $3,300. The moving average convergence divergence (MACD) indicator has crossed above its signal line on the four-hour chart, indicating potential bullish momentum in the near term according to technical analysis. The relative strength index (RSI) is near the neutral level of 50, with a move above that level signaling stronger buying pressure according to technical indicators.

Ethereum's key resistance level sits at $3,000, a level traders are closely watching. A break above this threshold could push the price toward the upper boundary of the descending channel near $3,100. However, support at $2,850 remains a critical level to watch, as a breakdown could signal renewed bearish pressure according to market analysis.

Broader Market and Institutional Moves

The increased inflows into Ethereum ETFs and the activity of major whales point to a growing sense of optimism in the market. BlackRock's Ethereum ETF, which saw a large inflow on November 24, has been a focal point for institutional investors seeking exposure to Ethereum as reported. This comes at a time when the U.S. Federal Reserve's rate cut expectations have risen sharply, with the probability of a cut at the December meeting now above 80% according to market analysis.

Institutional interest has also extended to other tokens, particularly those with high volatility and speculative appeal like HYPE as noted in analysis. Some whales have profited from sharp price movements in HYPE, while others have seen significant losses. This dynamic highlights the risks and opportunities in the crypto market, especially for large players with substantial capital according to market reports.

Meanwhile, new projects like BlockchainFX are drawing attention from whales seeking long-term value and utility-driven growth according to market analysis. These projects offer features such as multi-market trading and passive income systems, which appeal to investors looking for more than just short-term speculation as described in reports.

Risks to the Outlook

Despite the positive signs, risks remain for both whales and retail investors. Security vulnerabilities, including private key leaks and targeted attacks, have led to substantial losses for some whale holders. These risks are magnified for high-value wallets, making robust security practices essential according to security analysis.

Market volatility also continues to pose a challenge. While Ethereum has shown resilience in recent days, the broader crypto market remains subject to sharp corrections, especially in the wake of macroeconomic uncertainty. Traders and investors are closely monitoring on-chain data, funding rates, and regulatory developments for clues about the next market move according to market reports.

For the whale who recently lost $6 million, the decision to open a new ETH long position underscores a belief in Ethereum's long-term potential. However, it also highlights the risks involved in leveraged trading, particularly in a market as unpredictable as crypto as noted in analysis.