Ethereum Whale Linked to 3AC Reduces Short Position to Avoid Liquidation – Coincu

An Ethereum whale linked to Three Arrows Capital is reducing its leverage in short positions to prevent forced liquidation. The address, known for dormancy since 3AC’s peak activity, now cuts exposure quickly, reportedly holding 9,923.29 ETH in shorts valued at $25.4 million.

Recent activity underscores significant market implications as the whale navigates potential liquidation at a risky $2,577 ETH price point. Its moves could trigger economic stress if Ethereum prices surpass this threshold—highlighting the delicate market balance at play.

Ethereum Whale Reduces $25.4M Short to Avert Liquidation

A significant crypto whale with connections to Three Arrows Capital is rapidly reducing its 25x leveraged short position on Ethereum valued at $25.4 million to avoid liquidation. The activity is the first operation in four years for this address.

This move could influence Ethereum market dynamics, raising concerns about potential price swings given the whale’s considerable position. The liquidation price of $2,577 poses a substantial risk to Ethereum’s current valuation levels.

Reports indicate that the wallet has made several transactions with FTX, while on-chain analyst @ai_9684xtpa confirms the wallet’s association with the defunct hedge fund. Prominent figures, such as Zhu Su and Kyle Davies, have yet to comment on this development.

3AC-Linked Wallet Reactivates Amid $2,577 ETH Risk

Did you know? A connection with Three Arrows Capital echoes past liquidation events, where high-leverage betting led to contagious market instability—certainly one to watch closely.

Ethereum (ETH) trades at $2,423.46 with a -1.94% change in the last 24 hours. Its market cap stands at $292.58 billion with a 24-hour trading volume of $19.17 billion, according to CoinMarketCap. Over a month, ETH surged 52.32%, but it remains -10.74% compared to three months earlier.

Coincu analysts observe that regulatory attention might intensify if similar scenarios repeat, raising potential reform in leverage limits. Historical high-leverage activity typically strains liquidity, exacerbating risk, and threatening broader market integrity.