A wallet has been holding onto an Ethereum short position for over a month now, but could be on the verge of liquidation as the Ether price rally persists.
The whale address “0x8c58” opened a short position at $2,969 on Hyperliquid with a 20x leverage on July 1, with Ethereum correcting 3% on the day. Meanwhile, Ethereum quickly rebounded the next day and has been on a parabolic expansion since then.
Ethereum Whale Now At Risk of Liquidation
With Ethereum crossing a 4-year top of $4,600 today, the whale is now at risk of liquidation. The address sits at an unrealized loss of $26 million, with its liquidation price at $5,000.
Remarkably, the whale has been adding margin to his position as Ethereum’s price increased. He deposited 3.58 million USDC on July 18 and another 8.6 million USDC on August 9, all of which are at risk of going under the water if Ethereum’s bullish momentum persists.
For context, Ethereum has rallied a staggering 86.8% from its opening price of $2,486 on July 1 to its current market price of $4,644, spurred by growing institutional interest. Ether’s 8% growth yesterday, which has spilled into today, leaves it just 5% away from its current all-time high of $4,891.
Ethereum Foundation Wallet Sells 5,094 ETH
Meanwhile, a wallet tied to the Ethereum Foundation is dumping Ether despite its price rally. Lookonchain first reported the development on August 13, as the address “0xF39d” sold a total of 5,094 ($23.6 million) ETH over multiple transactions.
First, the wallet moved 1,696 ETH over two transactions on August 12 for 7.72 million DAI at $4,556. Then it sold another 1,100 ETH ($5.06 million) by 0:27 (UTC) today. A few minutes later, the address sold 2,300 ETH ($10.5 million) over five transactions, culminating in the 5,094 ETH.
In return, the wallet received a total of 18.71 million DAI stablecoin. However, it currently holds 11.58 million DAI, having moved over 7.1 million DAI to a DSProxy address.
Notably, the address originally received 20,756 ETH ($95.5 million) from the Ethereum Foundation wallet “EF 1” back in 2017. With the sale, which is its first major transaction in 128 days, the wallet now holds 100 ETH ($463,937).
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