Ethereum May Face Downside Risk After Whales Deposit Millions to Binance, Open 25x ETH Shorts on Hyperliquid

• Whale deposits and shorts increase immediate sell pressure on ETH.

• Critical support sits at $4,260; resistance to watch is $4,415 for a bullish reversal.

• 24h trading volume rose ~11%, and leveraged positions on Hyperliquid amplify liquidation risk.

Meta description: Ethereum whales offload millions in ETH as price tests triangle support near $4,260 — read concise analysis, key levels and trading takeaways.

What is driving the recent Ethereum whales activity?

Ethereum whales are moving large ETH amounts to exchanges and allocating stablecoins to open short positions, signaling profit-taking and elevated selling interest. On-chain traces show multi-million-dollar transfers and concentrated leveraged shorts that increase downside pressure as ETH tests technical support.

How large were the on-chain moves and where were funds deposited?

One whale transferred 7,500 ETH (~$32.3M) into Binance, then retained roughly 7,702 ETH after prior withdrawals totaling 15,202 ETH between July 20 and August 12 at an average price near $3,869. Another whale deposited 3.25M USDC into Hyperliquid and opened ETH shorts with 25x leverage, positioning about 3,000 ETH (~$13M).

Why does leveraged shorting matter for ETH price action?

High-leverage short positions concentrate liquidation risk. If price moves unexpectedly, forced liquidations can cause amplified volatility. With shorts placed at high liquidation points, margin dynamics could either accelerate declines or, if shorts are squeezed, produce rapid short-covering rallies.

How is ETH price reacting to whale moves and technical signals?

ETH slipped about 1.2% over 24 hours to $4,306 at press time, while 24-hour trading volume rose roughly 11% versus the prior day. Price is testing the base of a descending triangle on the 4-hour chart, and a recent 9-day EMA crossing below the 15-day EMA signals short-term bearish momentum.

When will downside momentum likely accelerate?

Downside momentum could accelerate if ETH breaks below $4,260. Such a move would expose targets under $4,000 based on recent technical structure and prior support zones. Conversely, clearing the descending trendline and $4,415 resistance would shift near-term bias bullish.

Frequently Asked Questions

Are these whale moves proof of an imminent crash?

Not necessarily. Large deposits and shorts signal increased risk but do not guarantee a crash. Market liquidity, broader order flow, and institutional behavior all influence whether selling pressure turns into a sustained decline.

How should traders incorporate this information into risk management?

Use defined position sizing, set stop-loss levels around technical invalidation points, and monitor on-chain indicators and exchange flows to adjust exposure as conditions change.

Key Takeaways

• Whale activity: Large ETH deposits to exchanges and substantial USDC allocations to Hyperliquid shorts raise near-term downside risk.
• Critical levels: Support at $4,260 is decisive; resistance at $4,415 must clear for bullish confirmation.
• Actionable insight: Traders should combine on-chain flows with technical risk management and watch leverage exposure around major positions.

Conclusion

COINOTAG analysis shows that concentrated whale deposits and leveraged short positions have increased downside risk for ETH as price tests the $4,260 triangle support. Traders should monitor exchange inflows, volume spikes, and the $4,415 resistance level for signals. Stay disciplined with risk management and watch on-chain indicators for confirmation.

As Ethereum’s [ETH] price moved sideways, some whales began offloading their ETH holdings. That’s why this whale activity has raised concerns about a potential price decline in the coming days.

Ethereum price at risk as whales offload millions in ETH

Lookonchain shared data showing that the whale wallet address 0x3e38 dumped 7,500 ETH worth $32.33 million into Binance.

Source: X

Despite the notable sell-off, the whale wallet still held 7,702 ETH worth $33 million after withdrawing 15,202 ETH between the 20th of July and the 12th of August at an average of $3,869.

This indicates that the whale is selling its ETH to take profits, as the price has continued to move sideways over the past week.

Meanwhile, another whale wallet address, 0xd8ef, deposited 3.25 million USDC into Hyperliquid [HYPE] and opened ETH short positions with 25x leverage.

This particular whale positioned 3,000 ETH worth $12.98 million, with liquidation points placed at the $5,291.9 level.

ETH slips as traders watch key levels

Together, these moves highlighted weakening sentiment.

Over the past 24 hours, ETH slipped by 1.20% to $4,306 at press time. Not to mention, this decline has triggered a surge in trader and investor participation.

CoinMarketCap data revealed that ETH’s 24-hour trading volume soared by 11% compared to the previous day.

This bearish whale activity coincided with ETH hovering near the base of a descending triangle on the four-hour chart. COINOTAG’s analysis noted no clear directional bias yet.

However, the 9-day EMA crossed below the 15-day EMA, flashing a bearish signal.

Source: TradingView

Since the 15th of August, ETH has recorded four such crossovers, each followed by notable declines, heightening concerns of another dip.

And so, based on recent price action, ETH’s downside momentum could be activated only if the price falls below the $4,260 level.

Now, if that happens, Ethereum may decline further to below $4,000.

On the other hand, a rally could be possible if ETH clears the descending trendline resistance and the hurdle at $4,415. If this occurs, ETH could soar by 10% and reach the $4,865 level.