Whales Feast as $500M Liquidation Storm Hits Ethereum & Bitcoin—Smart Money Buying the Dip?

Crypto markets just got steamrolled. Half a billion dollars in leveraged positions vaporized across Bitcoin and Ethereum—blood in the water or prime accumulation territory?

The liquidation carnage

Margin calls hit like wrecking balls as ETH and BTC prices plunged. Exchanges flashed liquidation alerts like a Vegas slot machine paying out trauma instead of jackpots.

Whale watching season

Blockchain sleuths spot mega-wallets loading up amid the chaos. When retail panics, the orcas circle—because nothing makes crypto whales happier than cheap sats and discounted gas fees.

Wall Street's tiny violin

Traditional finance desks clutch their pearls while quietly routing buy orders. Remember: in crypto, 'market collapse' is just institutional speak for 'fire sale.'

Ethereum Faces a Liquidation Cliff

Ethereum appears particularly vulnerable if its price breaks below $4,200. Data from Hyperdash shows that more than 56,000 ETH long positions, worth about $236 million, sit at risk of liquidation NEAR $4,170.

Additional liquidation clusters are positioned around $3,940 and $2,150–$2,160, levels that could amplify volatility if triggered.

Andrew Kang, founder of Mechanism Capital, warned that ETH could fall as low as $3,600 if the liquidation cascade continues. He added that overall ETH liquidations across exchanges could reach $5 billion, potentially driving prices even lower before stabilizing.

Despite the sell-off, some analysts argue the crash may be setting up a whale accumulation phase.

Crypto analyst CrypNuevo noted that Bitcoin recently printed a new all-time high before a sudden $1 billion liquidation event, a move he believes was engineered to flush out retail traders. He suggested that one whale absorbed much of the forced selling, signaling that institutional players may be scooping up BTC at discounted prices.

If whales are indeed accumulating, the dip could serve as a springboard for the next rally once Leveraged positions reset and selling pressure eases. However, with geopolitical uncertainty and fragile support levels, traders should remain cautious.

The coming days will determine whether Bitcoin stabilizes above $115,000 and Ethereum holds $4,200, or if another wave of liquidations drags the market deeper into correction.

Cover image from ChatGPT, ETHUSD chart from Tradingview