Ethereum News Today: Seven-Year-Dormant Whale Unleashes $39M ETH Storm

A single Bitcoin whale has made a $39.36 million profit in just three days by liquidating its Ethereum (ETH) long positions, marking one of the most lucrative trades in recent crypto history. The whale, identified as a long-dormant holder, had been accumulating ETH while selling Bitcoin (BTC) over the past week, triggering a short-term flash crash and significant market volatility. The move was widely tracked by on-chain analysts and crypto observers, with key data revealing the whale’s strategic accumulation and leveraged long positions.

According to on-chain data from multiple sources, the whale rotated 24,000 BTC — worth approximately $2.7 billion — into ETH in a matter of days. A portion of those funds was used to open leveraged long positions on Hyperliquid, a decentralized perpetual trading platform. The whale’s long ETH position totaled 135,265 ETH, representing over $577 million in exposure. As Ethereum’s price surged past $4,600, the position gained substantial unrealized profits, ultimately netting a $39.36 million gain after closing the longs.

The whale’s activities sparked a cascade of sell orders across the market. CoinGecko data shows that Bitcoin dropped from $114,666 to $112,174 within nine minutes on the day the whale began offloading its BTC holdings. Ethereum also saw a sharp 4% decline in the same timeframe. However, both assets rebounded, recovering roughly half of the losses as the market adjusted to the whale’s trading strategy.

On-chain tracking reveals that the whale had been inactive for over seven years, with its Bitcoin holdings originally sourced from the crypto exchange HTX in 2018. The sudden activation and large-scale BTC-to-ETH rotation indicate a deliberate and calculated approach to capital reallocation. Analysts noted that the whale’s actions align with a broader trend of institutional and large-cap crypto holders shifting their portfolios from Bitcoin to Ethereum. This trend was further reinforced by similar moves from other whales, including one who sold $76 million worth of BTC to open a leveraged ETH long position.

The whale’s strategy involved not only spot ETH purchases but also a significant portion of the acquired Ethereum being staked, signaling a long-term bullish stance on the altcoin. A total of 275,500 ETH — valued at $1.3 billion — was staked, reinforcing the whale’s commitment to Ethereum’s ecosystem. The whale’s trading pattern has been linked to other large holders who similarly sold BTC to buy ETH, with some wallets accumulating over 200,000 ETH during the second quarter of 2025.

Notably, the whale also demonstrated exceptional timing by opening its ETH long just before Federal Reserve Chair Jerome Powell’s dovish speech at Jackson Hole. The speech increased the probability of a September rate cut from 75% to 91.5%, which triggered a rapid 9% surge in Ethereum’s price within hours. This precise entry allowed the whale to leverage the trade using 10x leverage, amplifying its returns to a staggering 87% profit on the capital committed.

The whale’s actions highlight the increasing influence of large holders in shaping market sentiment and liquidity dynamics. As these whales continue to rotate assets and take leveraged positions, their moves will likely continue to drive short-term price fluctuations, particularly in ETH/BTC trading pairs. Traders and analysts are closely monitoring on-chain flows and whale alerts for further signs of large-scale capital reallocation in the coming weeks.

Source:

[1] Bitcoin OG whales to blame for BTC's painful rise: Willy Woo (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades)

[2] Bitcoin Whale Abruptly Wakes Up After Lying Low for Seven Years (https://dailyhodl.com/2025/08/23/bitcoin-whale-abruptly-wakes-up-after-lying-low-for-seven-years-gobbles-up-ethereum-after-dumping-337000000-in-btc-on-chain-data/)

[3] Bitcoin Whale Sells 24,000 BTC Triggering Flash Crash (https://finance.yahoo.com/news/bitcoin-whale-sells-24-000-061435431.html)

[4] Whale Makes $27 Million Profit in 24 Hours (https://investx.fr/en/crypto-news/whale-makes-27-million-profit-24-hours-leveraged-10x-hyperliquid/)

[5] Whale Alert: Bitcoin OG Rotates 4,000 BTC Into ETH (https://blockchain.news/flashnews/whale-alert-bitcoin-og-rotates-4-000-btc-into-eth-amasses-179-448-eth-at-4-490-average-and-holds-135-265-eth-long)

[6] A whale deposited 5.45 million USDC into Hyperliquid to open long positions in ETH and BTC (https://www.mexc.com/news/a-whale-deposited-5-45-million-usdc-into-hyperliquid-to-open-long-positions-in-eth-and-btc/72240)

[7] Whales Reshape Crypto Market With High-Stakes Bets and Massive Cashouts (https://cryptodnes.bg/en/whales-reshape-crypto-market-with-high-stakes-bets-and-massive-cashouts/)

[8] Arthur Hayes: HYPE's potential for growth (https://www.odaily.news/en/newsflash/444884)