ETH Shorting Whale with Strong Track Record Faces Unexpected Drawdown on Recent Position Cut

ser_we_are_early · 2025-12-26T21:57:54+00:00

Recent on-chain data shows a major ETH trader with a 75% win rate has reduced exposure by liquidating 20,000 ETH from a short position, shifting from $12.25 million in profits to an $840,000 loss. This highlights the risks of leveraged trading despite past success.

ser_we_are_early

2025-12-26 21:57:54

Abstract generation in progress

On-chain monitoring data reveals a significant development in the derivative markets. The sophisticated trader who previously demonstrated a 75% win rate across four major ETH trades has just taken action to reduce exposure. According to Yu Jin’s blockchain analytics, the whale liquidated 20,000 ETH from its short position approximately 20 minutes ago—a move that shifted the account’s trajectory from profitable to negative territory.

Position Details and Current Standing

The trader originally controlled a massive 50,000 ETH short position, representing roughly $170 million USD at current valuations. Before the recent position reduction, the account was sitting on $12.25 million USD in unrealized profits. However, the partial exit has now flipped this to an $840,000 USD unrealized loss—a dramatic reversal of fortune.

The whale continues to maintain significant short exposure with 30,000 ETH still open (valued at approximately $110 million USD). The entry point for this remaining position stands at $3,634 USD per token, while the liquidation threshold is set at $3,701 USD, leaving minimal margin for error.

Market Implications

This transaction highlights the risks inherent in large leveraged positions, even for traders with impressive historical win rates. The swift $13.09 million swing from profit to loss demonstrates how quickly market conditions can challenge even sophisticated strategies. For traders monitoring this whale’s activity, the position cut may signal concerns about near-term price direction or a strategic rebalancing of risk exposure in the current market environment.

Ethereum (ETH) continues to be a focal point for institutional and whale-level trading activity, with such significant position adjustments often attracting close scrutiny from the broader trading community.

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