After the FED announced interest rate cuts, large whale wallets have begun to inject capital into long positions on Ethereum (ETH). These moves clearly express strong confidence in ETH's upside. They also increase the overall risk.
Several factors suggest that their long positions could be liquidated soon without effective risk management.
How confident are whale wallets in their Ethereum long positions?
Whale activity provides a clear picture of the current sentiment.
The on-chain monitoring account Lookonchain reported that a known whale, regarded as a Bitcoin OG, has recently expanded a long position on Hyperliquid to 120094 ETH. The liquidation price is only $ 2234.
This position is currently showing a 24-hour PnL loss of over $ 13.5 million.
Similarly, another known trader, Machi Big Brother, holds a long position worth 6000 ETH with a liquidation price of $ 3152.
Additionally, the on-chain data platform Arkham reported that the Chinese whale trader who predicted the crash on 10/10 now holds a $ 300 million ETH long position on Hyperliquid.
Whale activity in ETH long positions reflects expectations of a soon price increase. However, behind this optimism lies significant risk due to Ethereum's high leverage.
ETH leverage reaches dangerous heights
CryptoQuant data shows that the estimated leverage ratio of ETH on Binance has reached 0.579 — the highest in history. This level indicates extremely aggressive leverage. Even small price fluctuations can trigger a domino effect.
“Such a high leverage ratio means that the volume of open contracts financed by leverage is growing faster than the volume of actual assets on the platform. When this happens, the market becomes more vulnerable to sudden price movements, as traders can be liquidated to a greater extent — either in an upward or downward trend,” said analyst Arab Chain.
Historical data shows that similar peaks usually coincide with periods of strong price pressure and often mark local market tops.
Weakness in the spot market increases risk.
The spot market also shows clear signs of weakening. Cryptocurrency market observer Wu Blockchain reported that the 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 fallen by 50%, from $ 158 billion in August to $ 78 billion today.
Weak buying power in the spot market, high leverage, and declining stablecoin reserves weaken ETH's ability to rise. These conditions could lead to whales' long positions facing significant liquidation risk.
