After the FED announced interest rate cuts, large whale wallets quickly started betting capital on long positions in Ethereum (ETH). These movements show strong confidence that ETH will rise. They also increase the overall risk.
Several factors indicate that their long positions may be forcibly liquidated soon if they do not manage risk properly.
How confident are whales in their long Ethereum positions?
Whale behavior provides a clear picture of the current sentiment in the market.
Chain tracker Lookonchain reported that a well-known whale, considered a Bitcoin OG, has recently expanded a long position on Hyperliquid to 120,094 ETH. The liquidation price is only 2,234 USD.
Right now, this position shows a loss of over 13.5 million USD in the last 24 hours.
Similarly, another well-known trader, Machi Big Brother, holds a long position worth 6,000 ETH with a liquidation price of 3,152 USD.
In addition, the data platform Arkham announced that the Chinese whale trader who predicted the crash on 10/10 now has a long ETH position of 300 million USD on Hyperliquid.
Whales' purchases in long ETH positions show that they expect a price increase soon. However, this optimism hides a significant risk due to Ethereum's high leverage.
ETH leverage reaches dangerously high levels
CryptoQuant shows that ETH's approximate leverage on Binance has reached 0.579 – the highest ever. This level means that many are using very high leverage. Even small price movements can therefore trigger a domino effect.
"Such high leverage means that the amount of open leveraged contracts is growing faster than the amount of assets on the platform. When this happens, the market becomes more sensitive to sudden price swings as traders are more easily forced to liquidate – both when the price goes up and down," said analyst Arab Chain.
Historical data shows that similar peaks often occur alongside strong price pressure, and they usually signal local tops in the market.
Weaknesses in the spot market increase risk
The spot market also shows clear signs of weakening. Crypto market watcher Wu Blockchain reported that spot trading volume on major exchanges fell by 28% in November 2025 compared to October.
Another report from BeInCrypto showed that the inflow of stablecoins to exchanges has decreased by 50%, from 158 billion USD in August to 78 billion USD today.
Together, low spot buying power, high leverage, and smaller stablecoin reserves diminish the possibility for ETH to recover. These factors can put whales' long positions at great risk of forced liquidation.
