Whale Bets Against ETH With 10x Leverage After Major Long Liquidation

In one of the most extreme ETH trading twists, one of the largest crypto whales whose wallet takes the name “0xFa5D…” has recently taken a huge short position on Ethereum (ETH), after a major long trade resulted in a loss of more than $3.56 million.

The active trades in the Hyperliquid platform showcased that the wallet sent $15.66 million of USDC to establish a fresh short position, representing a possible bearish market in the short term.

$70 Million Short on ETH

On-chain analytics platform Spot On Chain documented that the whale had taken a new position of 28,679 ETH worth roughly 70.1 million after employing 10x leverage. The trade entry was priced at 2,443.92, and the liquidation point was 2,930.62.

At the last available information, the position has an unrealized loss of -$16,439.14 or -0.23% ROE with the token being traded at a little bit above the entry at 2444.50.

The trade was initiated when the whale lost a disastrous net PnL of -$3,556,178.43 on a long trade that lasted almost 15 days (349h 45m). This trade essentially derailed the ultimate trading performance of the whale, which is currently red with a record all-time loss of 781,805.56 USD.

History of Volatile Moves

When taking a closer look at the trading history of the whale, one could notice that large-scale long positions on ETH performed extremely unevenly. Before the huge loss on July 2, the trader experienced a couple of winning trades of ETH, such as:

• A June 16 long that pocketed $2.26 million in profits
• A June 17 long, worth $877k profit
• Another ETH long June 17 fetching 484k

But such gains have been marred by losses, including a -$1.05 million BTC long on June 13, and the recent -$3.56 million ETH loss.

Although the whale has been able to produce some good performances, its record has swung wildly, implying a risky trading approach heavily leveraged on short-term plays.

Can the Whale Recover?

The whale’s directional bias is now entirely short, holding 0% in long positions. There is available free margin of 8.6 million available to date and a record loss net of all time -782k, so that everything is not lost yet. It will be interesting to see whether this brave short bet would work or is another loss.

Crypto followers and market observers will be looking keenly at the moves of such a whale through services such as Spot On Chain and Hyperdash to determine larger market sentiment and future pricing on the token.