Ethereum’s (ETH) recent price action might be masking deeper weakness. A well-tracked whale has ramped up their short position to 50,000 ETH, roughly $122 million, just as cracks begin to appear in both technical charts and futures data.
The timing has raised concerns among traders that this isn’t just hedging, but a sign of broader bearish conviction.
The Whale’s $122M Short is a Warning
The wallet in question, 0xcB92, has gained a reputation for sharp directional plays in recent months. Over the last few weeks, the wallet repeatedly opened and closed large ETH positions near local tops and bottoms, pocketing over $20 million in realized profits.
Instead of closing out, the wallet doubled down. At one point, the position showed over $26 million in unrealized gains.
Still, the whale held firm. As of now, the whale wallet is sitting on around $15.4 million in unrealized profit.
And there are no signs of scaling back. The move hasn’t gone unnoticed, drawing sharp attention from on-chain analysts and veteran traders alike.
Such high-conviction shorting, especially from wallets with accurate track records, often precedes larger directional shifts in price, especially when matched by other data points.
Derivatives Market Confirms Bearish Pressure For Ethereum (ETH)
The whale’s bet appears to line up with signals from the futures market. Open interest on ETH contracts has been steadily rising, pointing to more capital being directed toward short exposure.
At the same time, funding rates have flipped negative across major exchanges, which means traders are now paying to keep their short positions open.
This dynamic typically signals a majority leaning bearish, particularly when combined with rising open interest.
However, liquidations remain low, showing that most positions are opening methodically rather than out of fear, pointing to structured institutional shorting rather than retail panic.
Technical Setup Confirms Bearish Targets
From a price action perspective, Ethereum (ETH) was forming a textbook triple top pattern around the $2,650 resistance area. This level has been tested multiple times in June but has failed to break decisively.
The inability to sustain upward momentum despite strong ETF inflows and bullish macro cues has led many analysts to point to the $2,175–$2,200 range as the next key support zone.
A breakdown here could open the door to liquidation cascades or heavier spot selling, especially if whale shorts begin to unwind.
The Coin Republic analysts noted the “clear weakness” in Ethereum (ETH) current structure, calling the triple top “a bearish magnet for sell pressure” if $2,400 fails to hold.
The alignment of whale shorts, negative funding, and technical exhaustion could be more than a coincidence.
If Ethereum (ETH) breaks below the $2,200 zone, traders may see sharp downside acceleration. However, if price manages to absorb selling pressure and hold above $2,400, it could set the stage for a renewed push toward higher levels.
Either way, watching high-conviction whales like 0xcB92 may offer early signals in a market where headlines often lag positioning.
Source: https://www.thecoinrepublic.com/2025/06/25/ethereum-eth-price-headed-for-2-2k-whales-short-position-raises-flags/