• Ethereum whale on Hyperliquid faces $54.81 million in unrealized losses from $700 million leveraged longs.

• Derivatives volume rose 53.5% to $87.15 billion while open interest fell 55.29% to $37.67 billion, indicating heavy position squaring.

• Ethereum liquidations hit $196 million on December 15, 2025, with longs dominating at $213 million over two days, per CoinGlass data.

Ethereum price decline intensifies with whale losses and liquidations; discover key market shifts and recovery signals in this analysis. Stay informed on ETH trends for smarter trading decisions.

What is causing Ethereum’s recent price decline?

Ethereum’s price decline stems from its failure to maintain support above $3,400, leading to a downtrend within a descending channel and a drop to $2,926. This movement has amplified unrealized losses in derivatives, particularly for large holders, while cascading liquidations have reinforced bearish momentum across futures markets.

How are Ethereum whale positions contributing to market volatility?

A prominent Ethereum whale, tracked as “BitcoinOG” on Arkham, has accumulated nearly $700 million in leveraged long positions on Hyperliquid, making it the platform’s largest ETH long holder. As Ethereum’s price revisited sub-$3,000 levels following the April 2025 recovery attempt, this whale’s unrealized losses ballooned to over $54.81 million, with profits shrinking from $119.6 million to approximately $54 million. Despite these drawdowns, the position remains intact, with a liquidation threshold estimated at $2,082, signaling strong conviction from the holder. This scenario underscores how concentrated leverage among whales can exacerbate volatility during downtrends, as even insulated positions influence broader market sentiment.

Source: Arkham

The broader derivatives landscape has also shown signs of distress. Data from CoinGlass indicates a 53.5% surge in derivatives volume to $87.15 billion, contrasted by a 55.29% drop in open interest to $37.67 billion. This divergence points to aggressive position closures as traders de-risk amid the uncertainty.

Source: CoinGlass

Liquidations have been particularly acute, with Ethereum facing $196 million in total on December 15, 2025, followed by $58 million the next day. Long positions bore the brunt, accounting for $213 million in forced exits over this period. On-chain analysis from Onchain Lens highlights individual impacts, such as trader Machi Big Brother, who endured his tenth liquidation in recent weeks on a 25x leveraged SETH long. Since the October 10, 2025, market crash, this account has seen over 200 liquidations, resulting in losses exceeding $22.9 million, leaving a balance of just $53,178.

Source: CoinGlass

These events reflect the high-risk nature of leveraged trading in the cryptocurrency space. Market analysts, drawing from data provided by platforms like CoinGlass and Arkham, note that such liquidation cascades often amplify price declines by triggering automated sell-offs. As one derivatives expert observed, “In volatile environments like the current Ethereum market, leverage acts as a double-edged sword, rewarding bold positions in uptrends but punishing them severely during corrections.”

Frequently Asked Questions

What are the main factors behind Ethereum liquidations in December 2025?

Ethereum liquidations in December 2025 were primarily driven by the price drop below $3,000, which triggered margin calls on overleveraged long positions. According to CoinGlass, total liquidations reached $254 million over two days, with longs comprising 84% at $213 million, as declining open interest and rising volume signaled widespread de-risking among traders.

Will Ethereum’s whale positions survive the current downtrend?

Ethereum’s major whale positions, such as the $700 million long on Hyperliquid tracked by Arkham, appear resilient with liquidation prices around $2,082—well below the current $2,926 level. This buffer allows holders to weather the storm, though sustained pressure could test these thresholds if the price approaches $2,700 support.

Key Takeaways

• Ethereum’s downtrend highlights leverage risks: The 6.9% daily decline to $2,926 stems from unrealized losses and liquidations, emphasizing how derivatives amplify spot price movements.
• Whale conviction persists amid losses: Despite $54.81 million in drawdowns, large holders maintain positions, with liquidation far off, indicating potential for recovery if momentum shifts.
• Monitor oversold indicators for reversal: Stochastic RSI at 17 suggests oversold conditions; traders should watch $3,000 resistance for bullish signals or $2,700 support for further downside.

Conclusion

The Ethereum price decline in late 2025, marked by significant whale losses and derivatives liquidations, illustrates the interconnected risks in cryptocurrency markets. While short-term pressure from selling and forced exits dominates, technical indicators like the oversold Stochastic RSI hint at possible stabilization. Investors should track key levels around $3,000 for recovery cues, staying vigilant as Ethereum navigates this bearish phase toward potential upside in the coming weeks.

Ethereum slipped into a short-term downtrend after failing to hold above $3,400 six days ago. Since then, Ethereum [ETH] traded inside a minor descending channel and briefly dipped to a local low near $2,800. At press time, ETH traded at $2,926, down 6.9% on the daily chart, extending a week-long bearish stretch. That decline pushed both unrealized and realized losses sharply higher across derivatives markets.

Whale losses mount on Hyperliquid

One Ethereum whale saw unrealized losses swell past $54 million as prices slid below $3,000. Following Ethereum’s recovery attempt after the April crash, a Bitcoin whale rotated capital into Ethereum. The entity, labeled “BitcoinOG” on Arkham, shifted from Bitcoin and opened aggressive ETH long positions. In total, the whale built nearly $700 million in leveraged long exposure, becoming Hyperliquid’s largest ETH long holder.

Source: Arkham

As Ethereum revisited sub-$3,000 levels, the whale’s ETH longs lost more than $54.81 million in value. At the same time, unrealized profit fell from roughly $119.6 million to nearly $54 million. Even so, liquidation remained distant. The whale’s estimated liquidation price sat near $2,082. That buffer suggested conviction, with no positions closed despite mounting drawdowns.

Liquidations accelerate across futures markets

Besides the soaring unrealized losses in the Futures market, exits and forced liquidations jumped substantially. 

According to CoinGlass data, Derivatives Volume surged 53.5% to $87.15 billion while Open Interest dropped 55.29% to $37.67 billion. 

Source: CoinGlass

Typically, a drop in OI while Volume rises means many offsetting trades were executed as traders squared their books. 

As a result, Ethereum liquidations skyrocketed, reaching $196 million on the 15th of December and $58 million on the next day. Long’s liquidation dominated, reaching $213 million over this period. 

Source: CoinGlass

On-chain trackers also flagged individual wipeouts during the drawdown. According to Onchain Lens, trader Machi Big Brother suffered another forced liquidation on a 25x SETH long. The event marked his tenth liquidation in recent weeks. Since the 10th of October market crash, the account recorded over 200 liquidations, with losses surpassing $22.9 million. At the last update, the account balance stood at $53,178.

Momentum weakens as selling pressure builds

Price action reflected the growing stress across Derivatives markets. Ethereum fell sharply as cascading liquidations reinforced downside momentum. That move pushed the Stochastic RSI deep into oversold territory, settling near 17 at press time.

Source: TradingView

Such readings typically reflected strong selling pressure and weak short-term momentum. If liquidation pressure persisted, ETH could revisit the $2,700 region, where Parabolic SAR support previously emerged. By contrast, any sustainable recovery likely required bulls to reclaim $3,000 decisively. Beyond that, upside targets remained capped near $3,436, where Parabolic SAR resistance last aligned.

Final Thoughts

• Ethereum’s recent decline highlighted how leverage, rather than spot demand, shaped short-term price action.
• While major whales remained insulated, broader futures markets showed little tolerance for drawdowns.