After the FED announced a cut in interest rates, the main whale wallets began pouring capital into long positions on Ethereum (ETH). These movements signal strong confidence in ETH's upward potential. However, they also increase the overall risk.
Various factors suggest that their long positions could be liquidated soon without effective risk management.
How confident are the whales in their long positions on Ethereum?
The behavior of the whales offers a clear overview of the current sentiment.
The on-chain monitoring account Lookonchain reported that a notable whale, considered a Bitcoin OG, recently expanded a long position on Hyperliquid to 120,094 ETH. The liquidation price is just $2,234.
Currently, this position shows a PnL loss over the past 24 hours exceeding 13.5 million dollars.
Similarly, another well-known trader, Machi Big Brother, maintains a long position of 6,000 ETH with a liquidation price of $3,152.
Moreover, the on-chain data platform Arkham has reported that the Chinese whale that predicted the market crash on 10/10 now holds a long position on ETH worth 300 million dollars on Hyperliquid.
The activity of whales on long positions in ETH reflects their expectation of a price increase in the short term. However, behind this optimism lies a significant risk related to the levels of financial leverage on Ethereum.
Leverage on Ethereum is reaching dangerous levels.
CryptoQuant data shows that the estimated leverage ratio of ETH on Binance has reached 0.579 — the highest value ever. This level indicates extremely aggressive leverage usage. Even a small price fluctuation could trigger a domino effect.
“Such a high leverage ratio means that the volume of open contracts financed through leverage grows more rapidly than the volume of actual assets on the platform. When this happens, the market becomes more vulnerable to sudden price movements, as traders are more prone to liquidation — both in a bullish and bearish trend,” explained analyst Arab Chain in detail.
Historical data indicates that similar peaks typically coincide with periods of strong price pressure and often signal local market tops.
The weakness in the spot market adds further risk.
The spot market also shows clear signs of weakening. Crypto market observer Wu Blockchain reported that spot trading volume on major exchanges has decreased by 28% in November 2025 compared to October.
Another report from BeInCrypto highlighted that inflows of stablecoins to exchanges have halved, dropping from 158 billion dollars in August to 78 billion dollars at present.
Overall, the low spot buying strength, high financial leverage, and decline in stablecoin reserves reduce ETH's ability to recover. These conditions could put the whales' long positions at significant risk of liquidation.
