An Ethereum whale’s $100 million leveraged short position neared liquidation as ETH rebounded above $2,100.
Ethereum News
A crypto wallet tracked by on-chain platform Hypurrscan has opened a leveraged short position on Ethereum (ETH) worth more than $100 million. As of May 25, the trade sat underwater, with unrealized losses approaching $1 million as ETH prices climb toward its liquidation level.
The wallet, identified as "0x50b...," held a short position on 47,600 ETH valued at roughly $100.72 million. The trader entered at approximately $2,094.92 per token using around 23x cross-margin leverage. With ETH trading near $2,115, the unrealized loss stood just below $994,000. The trader had also paid roughly $2,145 in funding fees to keep the position open.
The liquidation price for the short sits near $2,150. Any move above that level would force an automatic unwind of the entire trade. The margin between current prices and that threshold is narrow, leaving the position exposed to further upside in ETH.
ETH had rebounded from a weekend low near $2,000 heading into May 25. Reports of progress in US-Iran negotiations supported a broader uptick in risk assets over the same period. That macro tailwind added pressure on traders holding short positions across crypto markets. #Ethereum
Ethereum Selling Pressure Draws Criticism
Ethereum co-founder Vitalik Buterin published a post on X on May 25 stating that the Ethereum Foundation will "sell less ETH" going forward. He framed the change as part of a move toward a leaner and longer-lasting organization. Buterin described the shift as choosing longevity over breadth, meaning reduced spending and a narrower mission.
The pledge came after the foundation faced criticism following a wave of researcher departures. Buterin pushed back against characterizations of the foundation as a central command structure for the Ethereum network. He said the organization would scale back spending and narrow its scope over time.
According to Arkham Intelligence, the Ethereum Foundation sold roughly 20,000 ETH in 2026, raising more than $45 million. It still holds approximately 103,000 ETH in liquid assets and a further 70,000 ETH in staked positions. Critics have argued that regular token sales place consistent downward pressure on ETH during weak market conditions.
Institutional Appetite for ETH Weakens
Large investors have trimmed their ETH exposure throughout 2026. Harvard Management Company reportedly closed an $87 million Ethereum exchange-traded fund (ETF) position after holding it for just one quarter. Goldman Sachs cut its own ETH ETF holdings by roughly 70%, leaving approximately $114 million in the product.
Spot Ethereum ETFs recorded more than $295 million in net outflows during May 2026, according to Glassnode. Total withdrawals from the products in 2026 have surpassed $945 million. Bankless co-founder David Hoffman disclosed he has sold all his personal ETH, adding weight to concerns that long-term Ethereum advocates are reassessing their positions.
Some analysts maintain a constructive long-term view on ETH. The network hosts roughly $43 billion in decentralized finance (DeFi) liquidity, more than $165 billion in stablecoins, and approximately 55% of all tokenized assets tracked across public blockchains, according to Token Terminal data. Those figures illustrate the scale of on-chain activity built on Ethereum relative to competing networks.
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