Ethereum News Today: Whale Bets $16M on ETH Rebound Amid Volatile Liquidation Trap

A high-stakes Ethereum trade executed with 25x leverage resulted in a $16.35 million long position, as a whale positioned for a rebound in Ether (ETH) prices after a recent dip [1]. The trader entered the position at $4,229.83 per ETH, with the cryptocurrency trading just above $4,240 at the time of writing. A 1% price increase would yield $163,000 in profit, illustrating the volatile yet potentially rewarding nature of leveraged trading in the crypto market. The position could see a $450,000 paper gain if ETH reaches the $4,336 level, which is identified as a liquidity magnet on liquidation heatmaps [1].

The timing of the whale’s entry appears strategic, coinciding with a dense cluster of short liquidations in the $4,300–$4,360 range. Market dynamics often gravitate toward such clusters, as market makers attempt to trigger stop-loss orders. This setup suggests that a modest price increase could validate the whale’s trade without requiring a full-blown rally [1]. However, the position remains highly vulnerable; a 4.34% price decline to around $4,046 would lead to a complete liquidation, wiping out the margin used to fund the leveraged bet.

Technical indicators also appear to support the whale’s optimism. Ethereum has maintained a strong position above its 20-day exponential moving average (EMA), which acts as a key support level. This EMA aligns with the lower boundary of a developing falling wedge pattern on the daily chart, a bullish reversal pattern that traders often use to signal potential upward momentum [1]. If the wedge pattern and EMA hold, Ether could target $4,750, representing a nearly 13% increase from current levels. A close below $4,140, however, would invalidate the setup and suggest a deeper correction is in play.

On a broader time frame, Ethereum is experiencing a significant weekly retest of key resistance-turned-support levels around $3,900–$4,000 [1]. Analysts have noted this as a potentially defining moment for the asset, with some suggesting that a successful retest could propel ETH toward $8,000. The ability of Ethereum to flip resistance into support is a recurring theme in its price action, underlining the importance of institutional and retail sentiment in shaping its trajectory.

In contrast to the whale's aggressive bet, another trader successfully locked in a $6.86 million profit by compounding a $125,000 initial investment into a $43 million position on Ether before closing out amid a market downturn [2]. The trader used a decentralized exchange, Hyperliquid, to compound gains, building a $303 million position at its peak. While the market experienced a downturn, the trader's strategic exit allowed for a 55-fold return on investment. This case highlights the dual-edged nature of leveraged trading—offering substantial returns when successful, but also exposing investors to significant losses in volatile market conditions.

Source:

[1] Ethereum whale opens $16.3M long as ETH price eyes bounce (https://cointelegraph.com/news/ethereum-whale-opens-16-3m-long-as-eth-price-eyes-bounce)

[2] Ether trader turns $125K into $43M, locks in $7M after market downturn (https://cointelegraph.com/news/ether-trader-turns-125k-43m-market-downturn)