Ethereum extended its price recovery and reclaimed $1.7k, a level that had recently acted as resistance. At press time, ETH traded at $1,756, up 3.02% on the daily chart.
The recovery pushed ETH above the MACD Signal Line Moving Averages (SMAs) at $1,630 and $1,671, signaling stronger momentum.
Why did an Ethereum whale take a $9 million loss?
As Ethereum reclaimed $1.7k, whales that had previously shorted the market exited to avoid mounting losses and liquidation risk. In fact, short liquidations surged, with $79 million in bearish positions wiped out after ETH crossed the level.
According to Onchain Lens, one whale closed a $54.1 million ETH short position.
The whale realized a $9.386 million loss and also paid $36,000 in Funding Fees. The exit suggested concerns over further downside for the short position.
Why are retail traders becoming more active?
While whales exited their shorts, retail traders appeared to increase their Futures activity.
CryptoQuant’s Ethereum Futures Average Order Size showed growing Retail Orders around the $1.6k and $1.7k price levels. That suggested traders were actively opening new positions, with sentiment appearing to favor longs.
According to CoinGlass, the Long/Short Ratio climbed above 1 across exchanges.
On Binance, the ratio rose to 1.5, while the overall Long/Short Ratio reached 1.03. That indicated long positions outnumbered shorts as traders anticipated further upside.
Can bulls capitalize on the move?
Ethereum’s recent recovery suggested demand had gradually returned to the market. Momentum indicators also reflected improving conditions.
For starters, the daily Relative Strength Index (RSI) climbed to 54, moving above the neutral 50 level. That suggested buyers had gained the upper hand.
The MACD Signal Line Moving Averages (SMAs) also remained above recent support levels, reinforcing the improving momentum.
If buyers maintain control, ETH could reclaim $1.8k before attempting a move toward $2k. However, Spot selling remained a risk.
Onchain Lens reported that Chun Wang deposited 9,876 ETH, worth $17.02 million, into Binance. If large Exchange Inflows continue, selling pressure could increase and send Ethereum [ETH] back toward $1,640.
Final Summary
- Ethereum [ETH] reclaimed the $1.7k resistance level, rising 3.02% as momentum strengthened.
- A whale closed a $54.1 million ETH short position, realizing a $9.386 million loss and paying $36,000 in Funding Fees.