Ethereum News Today: Whales Bet Big on Ethereum’s Recovery Amid $20M+ in Unrealized Losses

Bitcoin Bro Huang Licheng added 800 ETH to his Ethereum long position, bringing the total position size to over $1.15 billion, according to recent on-chain data. This move follows similar aggressive bullish activity by other high-profile traders, despite widespread unrealized losses across the market. Huang’s current ETH position has an entry price of $4,512, with a liquidation price of $3,244.44, and currently carries an unrealized loss of approximately $6.42 million. Additionally, he maintains a $17.82 million long position in HYPE, with an unrealized loss of $797,800. Huang’s continued commitment to long positions underscores a strategic bet on Ethereum’s potential recovery, despite a broader market downturn that has affected several other notable traders and whale addresses.

Meanwhile, other key whale addresses are experiencing substantial unrealized losses. One such trader, identified as 0xa523...75aa, holds a large ETH long position with a size of $247 million and a 15x leverage. This address opened its position at $4,534 and has repeatedly added to the position to lower the liquidation price. The current unrealized loss for this whale stands at $14.77 million, with a liquidation price set at $4,181. The whale’s activity reflects a high-risk, high-reward approach to trading, which is characteristic of leveraged positions in the crypto market. Such movements often serve as indicators for broader market sentiment, particularly when large players continue to add to longs in a bearish context.

The Ethereum market remains highly volatile, with several well-known traders either liquidated or forced to exit the market. For example, James Wynn, previously known for a $100 million liquidation, and @qwatio, an alleged insider trader, have both lost their principal and left the market. Similarly, AguilaTrades, another prominent figure in the space, has also exited after significant losses. Despite this trend, Huang Licheng’s decision to persist with long positions, even amid losses, suggests a belief in Ethereum’s long-term fundamentals or a strategic bet on market reversals. His current ETH position represents one of the largest longs in the market, with a significant unrealized loss but not yet at risk of liquidation.

On-chain analytics suggest that large holder accumulation patterns often correlate with bullish reversals, although in this case, the high leverage and repeated losses may amplify volatility. The current ETH price action, hovering around $4,450–$4,470, has not yet triggered liquidations for most large positions, but a moderate pullback could quickly turn the situation precarious. Traders are closely watching key support levels, particularly $4,300, as a critical threshold for maintaining bullish momentum.

Looking ahead, if Ethereum can break through the $5,300 resistance level, it may open the door to further gains, potentially reaching $6,000. This scenario would likely be supported by broader market catalysts such as ETF inflows or increased adoption of Ethereum-based decentralized finance (DeFi) projects. However, any drop below $4,297.67, the liquidation price for one of the larger whale positions, could trigger a cascade of forced selling and further downward pressure on the asset. The broader market implications of such a move would depend heavily on whether Ethereum’s price can hold above key support levels or whether the liquidation events drive a larger-scale sell-off.

The ongoing activity of whales like Huang Licheng and 0xa523 provides a real-time barometer for Ethereum’s market dynamics. While these positions are not guaranteed to succeed, their persistence in long positions indicates a belief in Ethereum’s potential for recovery. As the market remains in a state of flux, traders are advised to monitor both on-chain movements and macroeconomic factors that could influence the trajectory of Ethereum in the near term.

Source:

[1] ETH Whale 0xa523 Adds 20,800 ETH Long at 4,470–4,450 (https://blockchain.news/flashnews/eth-whale-0xa523-adds-20-800-eth-long-at-4-470-4-450)

[2] one whale's long position is at an unrealized loss of $14.77 million (https://www.bitget.com/news/detail/12560604940326)