After announcing the FED interest rate cuts, large whale wallets have started to make significant capital inflows into long positions in Ethereum (ETH). These moves indicate strong confidence in the upward expectation for ETH. However, they also increase the overall risk level in the market.
Several important factors indicate that whales' long positions might soon face liquidation without effective risk management.
How determined are whales in their long positions in Ethereum?
Whale movements clearly reflect the current investor sentiment.
According to on-chain tracking account Lookonchain, a well-known whale, identified among Bitcoin OGs, recently increased its long position on Hyperliquid to 120,094 ETH. The liquidation price for this position is only at $2,234.
Currently in this position, more than $13.5 million in losses have been recorded in the last 24 hours.
Similarly, another well-known trader, Machi Big Brother, also maintains a long position of 6,000 ETH, with a liquidation price of $3,152.
Additionally, according to the on-chain data platform Arkham, the Chinese whale trader who predicted the market crash of 10/10 is currently holding a long position of $300 million in ETH on Hyperliquid.
The whale activity in ETH long positions reflects expectations of price increases in the near term. However, behind this optimism, there is a serious risk due to the high leverage levels formed in Ethereum.
Leverage in Ethereum Reaches Dangerous Levels
According to CryptoQuant data, the estimated leverage ratio for ETH on Binance has reached a record level of 0.579. This ratio indicates an unprecedented level of aggressive leverage usage in market history. Even a small price movement could trigger a chain reaction.
Analyst Arab Chain stated: 'Such a high leverage ratio indicates that the volume of open contracts financed with leverage is increasing faster compared to the actual asset volume on the platform. In such an environment, the market becomes more vulnerable to sudden price movements: traders are more likely to face liquidation risks in either direction.'
Historical data shows that similar peak levels often coincide with periods of intense price pressure and generally signal local peaks.
Risk of Weakness in the Spot Market Increases
Signs of weakening are also becoming clearer in the spot market. According to crypto market observer Wu Blockchain, the spot trading volume on major cryptocurrency exchanges has decreased by 28% in November 2025 compared to October.
Another report from BeInCrypto noted a 50% drop in stablecoin inflows to cryptocurrency exchanges: Inflows that were at $158 billion in August have decreased to $78 billion as of today.
Low spot purchasing power, high leverage, and decreasing stablecoin reserves are limiting the possibility of a recovery in ETH prices. Under these conditions, whales' long positions may face serious liquidation risks.
