Whale's $1.24 million short position hangs at the liquidation line, ETH's rise puts big players in a dilemma

A whale’s short position of 21,820.69 ETH has an unrealized loss of $1.244 million, and more dangerously, the liquidation price of this position is exactly the entry price of $3,496.31. Currently, ETH is trading at $3,073.89, with about a $423 buffer to the liquidation line, but this situation is already quite passive for short holders. This reflects an increasing divergence between bullish and bearish sentiments in the market, with clear disagreements among major players’ betting logic.

Short risk is already quite imminent

According to the latest news, this address holds a short position of 21,820.69 ETH, a substantial size. An unrealized loss of $1.244 million means roughly a $57 loss per ETH. From the entry price of $3,496.31 to the current price of $3,073.89, the price has dropped about 12%. Since this whale is short, the falling price should be profitable for them. The problem is, this unrealized loss indicates ETH’s price has rebounded to a position highly unfavorable for shorts.

The liquidation line is the entry price, risk is unavoidable

The most peculiar point is that the liquidation price equals the entry price, both at $3,496.31. This means if ETH’s price rises again to this level, the short position will be forcibly liquidated. In other words, this whale has little room to adjust. The current $423 buffer sounds like a lot, but in the face of crypto market volatility, this distance could be wiped out in an instant.

Recent ETH upward trend makes short holders more anxious

Looking at the data, ETH has risen 3.12% in the past 24 hours and 5.57% over the past 7 days. This continuous upward trend is the biggest nightmare for shorts. Every rebound eats into the safety margin of this position. Market performance shows ETH’s market cap share has reached 12.23%, and trading volume is active, indicating high market attention to this asset, which could lead to increased volatility.

Market divergence between bulls and bears is intensifying

Interestingly, during the same period, other whales are doing the opposite. According to reports, an address deposited $8 million in margin into Hyperliquid and opened a long position of $13.76 million. This shows there are clear differing opinions in the market.

This opposing betting reflects significant differences in market participants’ outlooks. One side bets ETH will fall, the other bets it will rise, and currently, the long side seems to have the upper hand.

Historical context shows this is not an isolated case

Looking back at recent news, whales frequently bet on derivatives markets. Some spent $2.86 million on BTC call options on Deribit, while others reduced their ETH positions. This indicates that major players have been adjusting their risk exposure recently, and market sentiment is changing.

Points to watch moving forward

The future of this short position depends on two factors: whether ETH can continue rising and break through the liquidation price, and whether this whale will actively close the position to cut losses. If ETH keeps rising, this position could be forcibly liquidated within days. If the whale chooses to cut losses proactively, it signals a possible shift in major players’ outlooks on the market.

Summary

This unrealized loss of $1.244 million on the short position has become a market risk point. When the liquidation price equals the entry price, the position has little room for maneuver. Meanwhile, other large players are taking long positions, and this bullish-bearish confrontation could lead to intense volatility in the short term. For retail traders, the key is to understand the underlying market divergence—major players’ differing views on the future market trend—which itself is a warning sign. Next, closely monitor whether ETH will continue rising to touch $3,496 and observe the next moves of this whale address.