Hyperliquid's Second Largest ETH Long Position Suggests Attempt to Buy the Dip in Ethereum

An Ethereum trader on Hyperliquid has executed a large limit price buy order, potentially signaling a strategy to "buy the dip" in the asset. This move aligns with the trader's long-term swing trading approach and has led to a net profit of over $208 million, despite a recent $3.5 million loss.

Hyperliquid, a decentralized perpetual exchange, offers leverage up to 50x, which amplifies both potential gains and risks. The trader has used this leverage to amplify exposure to Ethereum's volatile price swings, primarily through over-the-counter (OTC) trading. This method allows for executing large trades with minimal market impact.

The trader currently holds $125 million in staked ETH (stETH) and $350.5 million in USDC. This diversified portfolio strategy helps manage risk while capitalizing on Ethereum's price volatility. The trader's approach also includes staking for additional yield, enhancing long-term returns.

Why Did This Happen?

The large buy order appears to be part of a broader market strategy to capitalize on Ethereum's price fluctuations. After a significant dip in late 2024 and early 2025, Ethereum has shown signs of recovery. The trader's decision to buy at a perceived dip aligns with a bullish view on the asset's future price action.

High leverage and OTC trading are key components of the trader's approach. These tools allow for executing trades at scale without triggering large price swings. The trader's ability to absorb a $3.5 million loss while still maintaining a net gain demonstrates the effectiveness of this strategy.

The use of stETH and USDC also reflects a long-term confidence in Ethereum's value while maintaining liquidity through the stablecoin. Staking provides additional yield, which further supports the trader's financial position.

How Did Markets React?

Ethereum's price has shown recent strength, supported by inflows into spot ETFs. On January 12, Ethereum ETFs recorded a net inflow of $5.042 million, ending a three-day outflow streak. This suggests renewed investor interest in the asset.

The overall market sentiment appears to be improving. Ethereum is currently trading above key support levels, and the RSI (Relative Strength Index) indicates rising momentum. A clean breakout above $3,150 could target the $3,223–$3,296 range.

Investor confidence is also supported by companies like Bitmine, which continues to accumulate Ethereum. As of January 11, 2026, Bitmine holds 4.168 million ETH, with $3.9 billion of that in staked form. This accumulation suggests a long-term bullish outlook on the asset.

What Are Analysts Watching Next?

Analysts are monitoring Ethereum's ability to break through key resistance levels. A sustained breakout above $3,150 could trigger a rally toward $3,223–$3,296. Conversely, failure to maintain this level could result in a pullback toward $3,058.

The performance of Ethereum ETFs is also a key focus. The total net inflows into Ethereum ETFs have reached $12.44 billion, with cumulative inflows continuing to rise. This trend suggests growing institutional and retail interest in the asset.

SharpLink Gaming, another Ethereum-focused firm, is deploying its $2.75 billion in ETH holdings for staking and incentives. The firm is aiming to pioneer the productive use of Ethereum by digital asset treasuries. This strategy reflects broader market confidence in Ethereum's long-term value.

Market observers are also watching for further developments in the DeFi space. High leverage trading on platforms like Hyperliquid continues to attract risk-tolerant traders seeking large returns. However, the risks associated with such strategies remain significant.

Overall, Ethereum's price action, combined with strong inflows into ETFs and institutional accumulation, suggests a positive outlook for the asset in the near term. Traders and investors are advised to monitor key resistance levels and ETF inflow trends for further signals.