An Ethereum whale has made a significant move by opening a $16.35 million long position on Ether (ETH) using 25x leverage. This bold wager suggests confidence that the recent dip in ETH price is over. Entered at $4,229.83 per ETH, the position is already showing slight profits with ETH trading above $4,240.
At such a large scale, even a 1% increase in ETH price would translate into a profit of over $163,000. Data from Kingfisher highlights a cluster of short liquidations between $4,300 and $4,360, suggesting that the market might be drawn toward these liquidity “magnets” as traders seek to capitalize on these opportunities.
Ethereum Whale’s Strategic Move
This strategic placement means that ETH does not need a major breakout to validate the whale’s trade. Instead, a simple movement into the $4,336 liquidity pool could yield multimillion-dollar paper gains. If ETH reaches this level, the whale’s position might see nearly $450,000 in unrealized profit.
Conversely, a 4.34% drop in ETH price to around $4,046 would completely liquidate the trade, wiping out the margin behind the position.
Did Ethereum Find a Local Bottom?
Currently, Ethereum is maintaining its position above the 20-day exponential moving average (20-day EMA), which has been a key support since July. This level aligns with the lower boundary of a developing falling wedge pattern on the daily chart, a classic bullish reversal setup. This confluence of support bolsters the whale’s $16.35 million long bet.
If the wedge and 20-day EMA fractal play out, ETH could target a rise to approximately $4,750, marking a 13% increase from current levels. However, a close below $4,140 might invalidate this setup.
Looking at the weekly chart, ETH is undergoing what analysts describe as one of the most “obvious weekly retests” in years. According to DIY Investing, Ethereum has turned its “biggest resistance” around the $3,900-$4,000 range into support.
“$ETH to $8k once this retest holds,” notes DIY Investing. This highlights the potential upside if the current support levels remain intact.
It is important to note that this article does not offer investment advice. All trading moves involve risk, and readers should conduct thorough research when making investment decisions.
