Ethereum Whale Gains $2.4M from 25x Short Position

A whale address reactivated, gaining $2.4 million from a 25x leveraged Ethereum short on May 17, 2025, after four years of dormancy.

Ethereum’s market experienced a sharp movement, triggered by a large short position. This strategic action reflects broader market caution.

Price Volatility and Impact

Ethereum price volatility coincided with the whale’s leveraged position, affecting market significantly . The whale invested around $2.95 million to execute this strategy during a time when ETH witnessed a 4% decline.

Ethereum’s recent price movements had been largely driven by short covering rather than new bullish positions. — Sui Chung, CEO, CF Benchmarks

The whale address expanded its bearish outlook by also shorting other cryptocurrencies such as PEPE, WIF, and OP at 10x leverage. This reflects the whale’s lack of confidence in current market conditions.

The position fueled market reactions, with about $64.6 million in liquidations following the price drop . Such events can sway market dynamics, affecting investor sentiment and trading strategies.

Increased scrutiny of leverage limits and market regulation is expected. Historical trends show volatility impacts, as highlighted in a similar event on the Hyperliquid platform.

Future Implications

Financial strategies may evolve as market participants reassess leverage use. Potential outcomes could see regulatory frameworks adjust to enhance market stability and reduce speculative risks.