After the Fed announced interest rate cuts, large whale wallets started putting capital into long positions on Ethereum (ETH). These movements show strong confidence in the upward potential of ETH. However, they also bring more risk.
Various factors indicate that their long positions may be liquidated soon if they do not apply effective risk management.
How certain are whales about their Ethereum long positions?
Whale behavior provides a clear picture of the current sentiment.
On-chain tracking account Lookonchain reported that a known whale, a true Bitcoin OG, recently expanded a long position on Hyperliquid to 120,094 ETH. The liquidation price is just $2,234.
This position is currently showing a 24-hour PnL loss of more than $13.5 million.
Also, another well-known trader, Machi Big Brother, holds a long position of 6,000 ETH with a liquidation price of $3,152.
Moreover, on-chain data platform Arkham reported that the Chinese whale trader who predicted the market crash on 10/10 is now holding a $300 million ETH long position on Hyperliquid.
Whale activity in ETH long positions indicates that they expect a short-term increase in the price. However, behind this optimism lies a significant risk due to Ethereum's high leverage level.
ETH leverage reaches dangerous highs
According to data from CryptoQuant, the estimated leverage ratio of ETH on Binance has risen to 0.579 — the highest ever. This level indicates extremely aggressive leverage usage. Even a small price movement can cause a domino effect.
‘Such a high leverage ratio means that the volume of open contracts with leverage is increasing faster than the volume of the actual assets on the platform. This makes the market more vulnerable to sudden price movements, as traders can be more easily liquidated — both in an upward and downward trend,’ said analyst Arab Chain.
Historical data shows that such spikes usually coincide with periods of strong downward pressure on the price and often indicate local market peaks.
Weakness in the spot market increases risk
The spot market is also showing clear signs of weakness. Crypto market watcher Wu Blockchain reported that the spot trading volume on major exchanges in November 2025 has decreased by 28% compared to October.
Another update from BeInCrypto showed that stablecoin inflows to exchanges have decreased by 50% — from $158 billion in August to $78 billion today.
Taken together, low purchasing power in the spot market, high leverage, and increasingly smaller stablecoin reserves mean that ETH has less chance of recovery. These conditions put whale long positions at significant liquidation risk.
