Ethereum Whale's $16.5M Short Profit; ETH Price Battle at $3,240

An Ethereum whale has made a significant profit by shorting ETH with 50x leverage on Hyperliquid, with unrealized gains of over $16.5 million. The position could be liquidated if Ethereum's price rises to $4,646.

Despite recent declines, some cryptocurrency traders have successfully navigated Ether’s downtrend, illustrating both the potential and the risks of leveraged trading. One trader reportedly made nearly $16 million by executing a highly leveraged short position on Ether (ETH), indicating a keen analysis of market dynamics in the face of a six-week price decline.

Ethereum's price dropped by more than 4% within 24 hours, stabilizing above the $3,000 mark at $3,107. To initiate a reversal in its recent downtrend, analysts emphasize the requirement for sustained fundamental activity on the Ethereum blockchain. Aurelie Barthere from Nansen suggests that Ethereum’s ecosystem must offer improved applications and collaborate effectively with government and private sector entities to enhance Ethereum’s visibility and adoption in a landscape where competing layer-1 chains are gaining traction.

For Ether to regain upward momentum, it must reclaim the $3,400 mark, which could trigger a shift toward the psychological resistance at $4,000. However, there is considerable resistance around the $3,240 level, which could hinder any bullish movements. According to CoinGlass data, a rally past this point may trigger liquidations worth over $1 billion from cumulative leveraged short positions.