Ethereum experienced strong upside volatility, touching a three-week high of $2.4K before retracing. At press time, ETH traded at $2,314, down 2.35% on the daily charts, marking a short-term shift in momentum.
With increased price volatility, profit and loss margins widened significantly for futures market participants.
Why did THIS ETH whale take profits?
With the recent market uptick, whales who went long during the dip have seen their positions turn highly profitable.
According to Onchain Lens, two wallets belonging to a single Matrixport entity fully closed 95,000 ETH long positions. After the trade, the whale realized $41.4 million in profit.
Now, the whale holds a 25,000 ETH (20x) long position in one wallet, with a floating profit of $8.1 million. Such a move to exit the market suggested the whale may view upside as limited, with the rally offering a favorable exit point.
What happened after the pullback?
However, although profits for longs jumped considerably, the price pullback also triggered increased liquidation.
According to CoinGlass data, $38.98 million worth of longs were liquidated, while more shorts were liquidated. As such, the liquidation of short positions exceeded $54.4 million.
Despite the rising liquidations for both positions, traders continued to deploy massive capital. Over the past 24 hours, $15.61 billion flowed into futures positions compared to $15.13 billion in outflows.
As a result, Futures Netflows jumped to $476 million, a clear sign of aggressive futures positioning as traders rushed to take either a short or a long position.
Can ETH momentum hold?
Ethereum [ETH] saw heightened volatility, largely driven by derivatives activity. The Derivatives market recorded increased profit realization and liquidations, reflecting the risks tied to leveraged moves.
Despite this shift, ETH has maintained upside strength. Looking at MACD and SMA, the altcoin continued to hold above short-term moving averages.
At the same time, the altcoin’s Stochastic RSI formed a bullish crossover, rising to 85 and stretching further into overbought territory. These conditions suggest strong demand in the short term, though momentum appears stretched.
If demand holds, ETH could push to reclaim the $2,400 resistance and aim for $2,900. However, if the latest bullish attempt fails, Ethereum may retrace toward short-term support near $2,133.
Final Summary
- A Matrixport-linked whale closed 95,000 ETH longs, locking in about $41.4M during the recent rally.
- The same entity still holds a 25,000 ETH leveraged long, suggesting partial confidence in continued upside.
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