Crypto Whale Takes $40M Loss as ETH & SOL Near Liquidation
A prominent crypto whale that recorded 14 consecutive winning trades and netted $15.83 M has flipped its positions and now faces approximately $40.4 M in total floating losses. Less than eight hours ago, it closed $258 M in BTC, ETH and SOL longs, realizing about $15.65 M in losses. Its remaining $148 M in ETH and SOL holdings sits within 4% of their liquidation prices—around $3,333 for ETH and $148 for SOL. Earlier data showed these positions were 8% above liquidation at $3,196 (ETH) and $143.50 (SOL), highlighting a rapid tightening of liquidation thresholds. This dramatic reversal underscores the margin risks and market volatility inherent in leveraged crypto trading. Traders should closely monitor liquidation levels and exercise caution when mirroring large accounts.
Bearish
The whale’s large-scale liquidations and leveraged positions nearing liquidation thresholds create immediate selling pressure on ETH and SOL. As these positions unwind or face forced closures, prices could dip sharply in the short term. Traders may respond by reducing exposure, heightening market volatility. In the longer term, the event underscores the risks of high leverage and concentrated holdings, likely prompting cautious sentiment across the market. Reduced willingness to leverage could dampen bullish momentum, while potential margin calls may trigger further downside. Overall, this situation points to a bearish outlook for ETH and SOL until liquidation risks subside and volatility stabilizes.