Ethereum News: Whale Activity Signals Potential Market Recovery Amid Bearish Crypto Prices

As the cryptocurrency market grapples with bearish prices, a recent move by a major whale on Ethereum has sparked hope for a potential recovery. Here’s a closer look at the development and its implications for the future of Ethereum.

Crypto Prices: Bearishness Over? Whale Activity Heightens on Ethereum

The latest bearish crypto prices have significantly impacted investor balances, leading to heavy liquidations and losses. Market analysts are closely monitoring Ethereum for potential recovery signs. Recently, a whale executed a 50X Leveraged long position with 175,000 ETH worth roughly $335.4 million on the HyperLiquid decentralized exchange and closed it with a $2.15 million profit. This whale activity may indicate market readiness for a bounce back.

Ethereum Stuck in a Bear Trap, New ATH Above $5000 May be on the Horizon

The crypto markets have digested bearish pressure with some tokens showing strength. Ethereum’s price remains in a narrow range, hinting at excess price compression. The ETH price could be stuck in a bearish trend, but it has potentially set a bear trap that could lead to a 200% upswing in the next 3 to 6 months. The latest pullback has caused ETH to lose a pivotal support held since July 2022.

Ethereum Price Prediction: Can ETH Recover After ETF Outflows?

Ethereum (ETH) price has suffered significant bearish sentiment in the past four months amid heightened midterm market uncertainty triggered by the U.S. tariff wars. The large-cap altcoin, with a fully diluted valuation of about $224 billion and a 24-hour average trading volume of $25 billion, has dropped more than 54 percent since December 2024. The Ethereum network has experienced a huge cash outflow in the past few weeks amid leadership change from the Ethereum Foundation. The U.S. spot Ether ETFs have recorded a net cash outflow of nearly $200 million in the past three weeks. Even BlackRock’s ETHA has been bleeding, whereby it recorded a net cash outflow of $11 million.

Hyperliquid’s $4M Loss: Trader Exploits Liquidations

In the high-stakes world of crypto trading, a recent trade on Hyperliquid’s HLP vault wiped out $4 million. A trader turned $10 million USDC into a $271 million Ethereum long position, walked away with $1.8 million in profit, and left HLP to absorb the loss. This is considered the biggest single-day loss since Hyperliquid’s launch in May 2023. Crypto analyst Three Sigma questions the reliability of protocols relying on liquidations.