Ethereum Whales Bet Big Amid Geopolitical Tensions, Ether Price Drops 10%

Ethereum whales have placed significant leveraged bets on the cryptocurrency's price recovery, despite the geopolitical tensions that have dampened investor risk appetite. One whale opened an Ether long position of over $101 million with 25x leverage at an entry price of $2,247, according to blockchain data. This move generated over $900,000 in unrealized profit but incurred over $2.5 million in funding fees. The position is at risk of liquidation if Ether’s price falls below $2,196.

This leveraged bet was made just hours before another whale withdrew over $40 million worth of ETH from a major exchange, bringing their total ETH holdings to $112 million. This activity occurred as Ether slumped to a one-month low of $2,113 on June 22, following US airstrikes on Iran’s nuclear sites. The US President called the attacks a “spectacular military success” and warned of further strikes unless Iran agreed to peace.

The two countries have been engaged in strategic missile warfare since June 13, when Israel launched multiple strikes on Iran, marking its largest attack on the country since the Iran-Iraq War in the 1980s. Most Bitcoin and Ether traders expect a further correction after the latest escalation in the ongoing conflict. Around 64% of the industry’s most successful cryptocurrency traders are currently shorting the world’s two largest cryptocurrencies, while only 36% remain long.

Most Ether investors are currently sidelined due to the ongoing geopolitical tensions and monetary uncertainty. According to a research analyst, these factors, combined with the neutral view from options data, indicate a “wait-and-see” stage. The price drop was attributed to geopolitical escalations, with the possibility of a wider correction still looming. Whether the familiar ‘panic-then-recover’ pattern re-emerges will depend on how quickly the geopolitical narrative cools. Macro-driven pullbacks are still being treated as opportunities rather than signs of a broader directional reversal.

On June 17, the staked Ether supply reached a new all-time high of over 35 million, signaling that Ether’s sellable supply is decreasing as investors prepare to hold their ETH to generate passive yield rather than sell at current prices. This indicates a shift in investor sentiment towards long-term holding and yield generation, despite the current market volatility.