Ethereum Whale Nets $16.8M Shorting ETH as Price Drops to $2,600

An Ethereum whale has made $16.8 million in profit by shorting ETH ahead of a significant market correction.

As the broader crypto market experienced a sharp selloff, Ethereum dropped 5% to $2,600, liquidating over $81 million in long positions.

According to Hypurr Scan data, the whale executed a high-leverage 50x short trade, anticipating Ethereum’s decline. This move underscores the extreme volatility in crypto markets, where large traders can generate substantial gains by betting against price movements.

With Trump’s new tariff policies set to take effect on February 1, analysts expect increased turbulence in both traditional and crypto markets. As investors assess risk, Ethereum’s next move remains uncertain.

Will Ethereum Reverse Its Downtrend?

Despite ETH’s recent downturn, many analysts believe a bullish reversal is on the horizon. Technical charts indicate that Ethereum is forming an inverse head-and-shoulders pattern, a classic indicator of a potential upward breakout.

Key insights from market analysts:

• Crypto analyst Mags: ETH must break past $4,000 to confirm a larger rally toward $7,500.

• Titan of Crypto: The ETH/BTC trading pair is at a critical support level, suggesting Ethereum could start outperforming Bitcoin.

• Whale Accumulation: On-chain data shows large investors have been buying ETH during recent consolidation.

If Ethereum successfully holds current support levels and regains momentum, it could spark a broader altcoin rally, reversing recent losses across the market.

Ethereum’s February Track Record Looks Promising

Historically, February has been Ethereum’s best-performing month. Data shows ETH has closed in positive territory every year since 2018, with an average return of 17.13%.

Additional factors driving ETH sentiment:

• Liquidity Shift: Crypto analyst Miles Deutscher reports a notable capital flow from Solana (SOL) to Ethereum, signaling growing investor confidence in ETH.

• Market Sentiment: The upcoming U.S. jobs data will play a key role in determining Ethereum’s short-term price trajectory.

As of now, Ethereum is trading at $2,599, down 4.1% on the day, with trading volumes falling 22.5% to $23.5 billion. If market conditions stabilize, ETH may reclaim higher price levels in the coming weeks.