This Whale Isn’t Stopping: $392M Ethereum Long And A Tight Liquidation Price Revealed
Ethereum has retraced to the $3,160 stage following the extremely anticipated FOMC assembly, the place the Federal Reserve minimize rates of interest by 25 foundation factors. While price cuts usually help threat belongings, Jerome Powell’s feedback added a brand new layer of uncertainty to the market.
By overtly acknowledging the dangers of weaker development paired with persistent inflation, Powell launched the opportunity of stagflation—a situation that traditionally challenges each equities and crypto. As a consequence, sentiment throughout the market stays fragile, and traders are struggling to interpret what this macro shift might imply for Ethereum’s subsequent transfer.
Despite the volatility surrounding the choice, one main whale continues to behave with conviction. According to Lookonchain, the Bitcoin OG who famously shorted the market throughout the October 10 crash is as soon as once more doubling down on his bullish Ethereum place.
Instead of taking income or lowering publicity after the latest rally, he has continued accumulating aggressively, signaling a powerful perception in ETH’s medium-term trajectory whilst broader sentiment turns cautious.
Whale Position Ramps Up, But Risk Is Rising
According to Lookonchain, the whale’s position has now surged to 120,094 ETH, valued at roughly $392.5 million. With a liquidation value at $2,234.69, this has turn out to be one of many largest and most aggressive lengthy positions presently tracked on-chain.
Such a large allocation indicators excessive conviction, particularly coming from the identical Bitcoin OG who efficiently shorted the market throughout the October 10 crash. However, the dimensions of this guess additionally highlights how a lot threat is now concentrated in a single directional place.
The liquidation value is a key concern. At $2,234, it sits practically $1,000 under present ranges, however in extremely leveraged environments—particularly throughout macro uncertainty—costs can retrace violently. Ethereum has already proven a bent towards sharp intraday strikes, and with funding charges rising and leverage throughout the market stretching to historic highs, even a reasonable correction might set off cascading liquidations.
If ETH experiences a sudden spike in volatility attributable to shifting macro situations, a damaging response to the newest FOMC choice, or a broader market unwind, the whale’s place might come beneath important strain. While giant whales usually affect market sentiment, this setup illustrates how skinny the margin for error has turn out to be.
ETH Testing Resistance While Momentum Weakens
Ethereum has retraced to the $3,196 stage after failing to carry above the $3,300 zone, signaling that bullish momentum is starting to weaken. The each day chart reveals ETH rejecting the pink 200-day shifting common, a key long-term development indicator that has acted as resistance all through the latest downtrend. Until ETH breaks and closes decisively above this stage, the broader construction stays susceptible.
The 50-day shifting common remains to be sloping downward, reflecting persistent promoting strain regardless of final week’s rebound. Meanwhile, the 100-day shifting common sits nicely above the present value, reinforcing the heavy overhead resistance ETH should overcome to reestablish a bullish development. Volume has additionally declined in comparison with the early December bounce, suggesting consumers are shedding energy as value approaches main resistance ranges.
Related Reading: Bitcoin Exchange Reserves Fall To Lowest Levels on Record: The Bullish Signal Most Traders Are Missing
Structurally, ETH stays in a mid-term downtrend, forming decrease highs and decrease lows since September. Although the latest push from the $2,800 area reveals consumers defending key help, the rejection at $3,350 highlights that sellers are nonetheless in management at greater ranges.
If ETH fails to regain the 200-day shifting common quickly, a retest of the $3,050–$3,100 help vary turns into probably. Conversely, a powerful reclaim above $3,350 might open the door for a transfer towards $3,500, however the market will want renewed momentum to get there.
Featured picture from ChatGPT, chart from TradingView.com