ETH Downtrend: $54M Whale Losses and $213M Long Liquidations
Ethereum (ETH) slipped into a short-term downtrend after failing to hold $3,400, sliding to about $2,926 (–6.9%) and briefly testing the $2,800 area. Derivatives stress drove much of the move: an Arkham‑tagged whale (“BitcoinOG”) amassed roughly $700M in leveraged ETH longs on Hyperliquid and took unrealized losses exceeding $54M while its estimated liquidation price remained near $2,082. Market metrics show heavy position squaring — daily derivatives volume rose ~53.5% to $87.15B while open interest fell ~55.3% to $37.67B. CoinGlass recorded sharp liquidations: ~$196M on Dec 15 and ~$58M the following day, with long liquidations totaling about $213M across the two days. On‑chain events included repeated high‑leverage SETH long wipeouts, highlighting concentrated leverage risk. Technicals: Stochastic RSI sits near 17 (oversold); key levels are $3,000 (resistance) and $2,700 (support). Implications for traders: this is a leverage‑driven pullback raising short‑term volatility and cascade liquidation risk. Traders should manage position sizes, monitor open interest, funding rates, and clustered liquidations; a reclaim of $3,000 is needed to reopen upside toward prior resistance near $3,436, while sustained liquidation pressure could drag ETH toward $2,700 or lower.
Bearish
The news points to a leverage‑driven correction that increases downside pressure on ETH in the short term. Large concentrated positions (the ~$700M whale) and $213M of long liquidations over two days raise the probability of cascade liquidations and continued volatility. Falling open interest alongside rising daily derivatives volume indicates forced position squaring rather than new long accumulation, which is typically bearish for immediate price action. Technicals show oversold conditions, which could allow for short‑term bounces, but reclaiming $3,000 is necessary for bulls to reassert control. Longer term, the event is neutral to mixed: if leverage is flushed and spot demand returns, ETH could stabilize and resume upside; however, persistent deleveraging or a breach of $2,700 would deepen bearish momentum.