Whale Opens $80M Ethereum Long on Hyperliquid With 20x Leverage

A major Ethereum whale opened a $80 million long position on the Hyperliquid platform using 20x leverage, marking one of the largest Ethereum leveraged trades of recent weeks according to reports. The move highlights the growing use of leveraged trading in the Ethereum market as investors seek to capitalize on both bullish and bearish trends.

Ethereum's price has fallen by roughly 40% in the past 10 days, with major whale activity contributing to downward pressure. Onchain whale Trend Research, for example, has started liquidating large portions of its ETH holdings, having returned 772,865 ETH to Binance as prices neared its liquidation threshold.

Retail investors and wallets in the 100–1,000 and 1,000–10,000 ETH range have also been distributing heavily, offloading over 820,000 ETH in the past week. This widespread selling has pushed Ethereum's price below its realized price, an event that historically accelerates further selling as investors cut losses according to analysis.

Why Did This Happen?

The sharp decline in Ethereum's price has been attributed in part to leveraged liquidations and large whale activity. Trend Research, a key whale with a large Ethereum position, has been forced to deposit large volumes back into exchanges as its holdings approached liquidation levels.

BitMine's Thomas Lee has noted that Ethereum has historically seen similar 40–60% drawdowns seven times in the past eight years. He argues that these declines have often been followed by V-shaped recoveries, citing this as an opportunity for investors to enter the market at more favorable levels.

How Did Markets React?

The drop in Ethereum's price has also had ripple effects in the broader crypto market. Bitcoin steadies around $70,000 as investors remain cautious, with key technical indicators like the MACD and RSI suggesting that bearish momentum is still strong.

XRP and other altcoins remain under pressure, with XRP failing to break above its 50-day EMA and remaining in oversold territory. The broader market is watching whether Ethereum can stabilize above the $2,000 level, which would signal renewed buyer interest and potentially trigger a recovery according to market analysis.

Ethereum's 200-day EMA is currently at $2,019, and a daily close above this level could indicate a potential reversal in the short-term trend. However, traders remain cautious given the weak derivatives market and the large volume of outstanding shorts according to technical indicators.

What Are Investors Watching Next?

Investors are closely monitoring Ethereum's behavior around key technical levels and whale activity to assess whether the current bearish trend will continue or reverse. A break above $2,100 would be a key test, potentially leading to a retest of the $2,380 level according to market analysis.

Market participants are also paying attention to the actions of large whales, including the whale on Hyperliquid. If this position is maintained and gains value, it could signal renewed institutional interest in Ethereum at current price levels according to reports.

Regulatory developments and macroeconomic trends will also play a role in shaping Ethereum's near-term path. With interest rates expected to remain high for longer, the impact on leveraged positions and investor risk appetite remains a key factor according to analysts.

Ethereum's ability to stabilize and move higher will depend on a combination of technical support levels, whale positioning, and broader market sentiment. A daily close above $1,753 would be essential for Ethereum to avoid further bearish momentum according to technical analysis.