An Ethereum whale has reopened a large short position after an eight-month hiatus, potentially signaling further bearish sentiment in the market.
A significant development in the cryptocurrency markets saw an Ethereum (ETH) whale re-enter the fray by opening a $19.72 million 20x-leveraged ETH short position as Ether approached its $1,500 support zone. This move comes after a period of eight months during which the wallet was inactive.
The whale’s latest action is noteworthy given its trading history; in October 2025, it had previously opened and closed an ETH short near $4,172, making net profits of around $41,693. This time, however, the position carries nearly twenty times more notional exposure.
The market context reveals that Ethereum’s recent decline was part of a broader tech-led risk selloff, with traders reducing their positions in speculative assets following pressure on Nasdaq and chip stocks. Additionally, renewed scrutiny over the Ethereum Foundation, including budget cuts and staff reductions, has dampened investor sentiment.
Technical analysis suggests that ETH could continue its bearish trend if it breaks below $1,375, a level which would result in substantial profits for the whale—around $2.39 million before fees and funding costs. However, there are risks involved: Ether’s daily chart shows potential support at around $1,500–$1,512, hinting at a possible double bottom formation.
Should ETH break above its neckline near $1,850, it could confirm the double bottom pattern and lead to a rebound towards approximately $2,190. This level is critical for both bulls and bears as it marks the whale’s liquidation zone, potentially pressuring or wiping out their short position if they do not add collateral.
This move by the Ethereum whale highlights ongoing bearish sentiment in the market but also underscores the volatility and potential risks associated with leveraged trading. Traders should remain vigilant for further developments and adjust strategies accordingly.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.