Whale’s ETH Short Nets $9.1M; Opens 3.09M XPL Short
On September 26, on-chain analyst Yu Jin reported that a crypto whale which opened a short position on ETH at $4,718 two weeks ago has held the position and is now sitting on an unrealized profit of $9.1 million. The whale also added a new short position on XPL one hour ago, shorting 3.09 million XPL tokens at an entry price of $1.19. This aggressive bearish stance by a major market player underlines ongoing downward pressure on ETH and XPL prices. Traders should monitor open interest and whale activity for potential volatility spikes and price movements in the near term.
Bearish
Large whale shorts often signal bearish sentiment and can amplify price declines. Here, the whale’s $9.1M unrealized profit on ETH shorts since the $4,718 entry point highlights significant downward pressure on ETH. The additional short of 3.09M XPL at $1.19 further underscores its bearish outlook on XPL. Historically, similar whale short accumulations in early 2023 preceded sharp price drops in ETH as other traders followed suit. In the short term, these hefty open positions may increase volatility and drive further sell orders. In the long term, if the whale maintains or scales up shorts, it could sustain downward momentum; conversely, eventual short covering might trigger sharp rebounds.