Whale Closes $20.53M ETH Long Position, Earns $37K in 10 Minutes

A large Ethereum whale closed a $20.53 million USD long position on January 5, 2026, realizing a $37,000 USD profit in just 10 minutes. The trade reflects the continued high volatility and leverage in the Ethereum market.

ETH/USD is currently trading near $3,200, with bulls attempting to reclaim the $3,470 level. The price is above the key $2,650–$2,850 zone, which analysts consider crucial for maintaining a bullish bias.

Grayscale’s Ethereum Staking ETF (ETHE) made history on January 5 by becoming the first U.S.-listed Ethereum ETF to distribute staking rewards to investors. Shareholders received $0.083178 per share, marking a milestone in the integration of on-chain staking into regulated investment products.

Why Did This Happen?

The whale's trade highlights the role of large actors in rapidly shifting Ethereum prices. A single move of this size can create immediate profit or loss, depending on market conditions and timing. The rapid $37,000 gain was likely driven by a short-term price spike, possibly linked to broader market sentiment or whale accumulation.

Ethereum's price structure also shows a mix of bullish and bearish signals. While whales are accumulating and ETFs are absorbing supply, leverage ratios remain stretched, increasing the risk of a sharp correction. If ETH/USD drops below $2,650, analysts warn the bullish outlook could deteriorate.

How Did Markets Respond?

The $20.53 million ETH position closure occurred in a context of recent Ethereum ETF inflows. U.S. spot Ethereum ETFs saw $67.8 million in net inflows on December 30, 2024, reversing a four-day outflow trend. This suggests institutional interest remains strong despite short-term volatility.

Grayscale's ETHE led the inflows with $50.19 million, reinforcing its dominance in the ETF space. The fund's transition from a private trust to a publicly traded ETF has allowed it to maintain a leading role in Ethereum exposure.

What Are Analysts Watching Next?

The next key resistance level for Ethereum is $3,470. If bulls can push the price above this threshold and maintain it, the market may move into a new upward phase. However, a drop below $2,850 could trigger a deeper correction.

Investors are also monitoring whale behavior. In recent weeks, a major whale closed a $270 million short position across Bitcoin, Ethereum, and Solana before reopening new shorts. This activity suggests continued bearish expectations from large holders.

ETF flows and regulatory developments remain important. Grayscale's successful distribution of staking rewards has set a precedent for other funds to follow. The company also updated its product names to reflect staking capabilities, including renaming its Solana ETF to Grayscale Solana Staking ETF.

Ethereum's price remains in a "bullish but dangerous" range. Bulls need to prove their strength, while bears are waiting for a breakdown in key support levels. For investors, the next 10 to 30 days will be crucial in determining whether the current rally is part of a long-term bull market or a short-lived bounce.