- Whale exit sparks Ethereum caution as market consolidates below $4,500.
- $93 million long position closed, signaling reduced leverage and risk.
- Ethereum momentum slows while liquidity concerns rise from major withdrawals.
Ethereum’s recent rally has slowed as large traders begin to scale back exposure. According to on-chain data, whale address 0x89Da closed a leveraged long position of 21,683 ETH, valued at around $93 million, and absorbed a realized loss of nearly $6.6 million.
Soon after the trade was closed, the whale completely exited Hyperliquid by withdrawing $9.6 million worth of USDC. This action has been met with attention, given that Hyperliquid is heavily used to leverage trade in Ethereum, and thus, such liquidations can manipulate liquidity and sentiment.
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Ethereum Price Consolidates Below Key Levels
The latest daily chart shows Ethereum retreating after testing highs near $4,800. The price is consolidating below $4,500, holding above the 20-day moving average while still maintaining a strong uptrend.
The recent red candles have greater volume, indicating that sellers are entering the market after the long rally. Ethereum is still above longer-term moving averages, however, which reminds us that there is still broader momentum.
Large traders tend to de-leverage as assets approach possible cycle peaks. The withdrawal of whale 0x89Da conforms to this historical trend, especially in the case of funding rates of perpetual futures remaining high.
Possible Impact on Market Liquidity
If other whales follow with similar actions, the derivatives market could see a notable decline in open interest. That would diminish the leverage, which has been a key factor in the sharp rise of Ethereum in recent weeks.
Reduced leverage tends to lower upside volatility but can make it more vulnerable to sudden downside moves should any selling pressure develop. This renders near-term stability contingent on the way other large holders treat risk.
Also, the chart shows that Ethereum can be trading near annual highs even after the pullback. Nevertheless, the decreased desire of large traders to remain leveraged is a warning that can not be ignored.
Ethereum has been trading in an uptrend, but the whale reducing its exposure and withdrawing stablecoins indicates increasing caution. A wider derisking phase by large players could limit further upside momentum and shift market sentiment toward consolidation.
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