Whale Deposits Nearly $3.9M USDC to Short Ethereum on Hyperliquid

Whale opened a $96M short position on Ethereum using 25x leverage.

Ethereum trades at $2,532 with 5.35% gain despite shorting activity.

High leverage increases risk, reflecting volatile crypto derivatives market.

A significant whale recently deposited 3.876 million USDC into the Hyperliquid platform to initiate a short position on Ethereum (ETH). The trader entered the market at a price of $2,568.12, using 25x leverage. This sizeable move reflects a substantial bet against ETH’s near-term price direction on the decentralized exchange.

Details of the Short Position

According to a Spot On Chain post on X, the trader’s capital injection of 3.876 million USDC on Hyperliquid enabled opening a short position with 25 times leverage. This leverage level means the effective exposure in the ETH market exceeds 96 million US dollars. By choosing the entry price of $2,568.12, the whale positioned the trade to profit if ETH’s price declines below that point.

Hyperliquid is known for facilitating leveraged trades with stablecoin deposits, and this transaction marks one of the larger single-asset moves recently. The size of the deposit indicates a high degree of confidence in the short strategy, considering the amplified risk involved with 25x leverage.

Ethereum Vs USDC Market Movement

Tracking the current market trend, CoinMarketCap data indicates that Ethereum (ETH) trades at $2,532.32, gaining 5.35% over 24 hours. Its market capitalization stands at $305.72 billion, reflecting the same percentage increase. The 24-hour trading volume dropped 16.60% to $26.85 billion. The volume-to-market cap ratio is 8.51%.

Source: CoinMarketCap

The chart shows ETH's price rising to $2,531.16 with a 7.50% gain during the Asian trading session. The USDC price remained stable near $1.00. The 24-hour volume at this time registered $26.02 billion. The data indicates strong price momentum despite reduced trading volume. Market cap growth aligns with the price increase, showing steady investor interest.

Implications of the Leverage and Market Activity

Using 25x leverage multiplies both potential gains and losses. Therefore, the position carries a significant risk of liquidation if the price moves against the trade. The whale’s decision to commit nearly four million USDC suggests an expectation of downward pressure on Ethereum’s price.

This transaction follows a trend where large holders increasingly engage in leveraged shorting to capitalize on market volatility. Moreover, the activity impacts market liquidity on Hyperliquid and could influence price action in the broader Ethereum market.

A single whale deposited 3.876 million USDC on Hyperliquid to short ETH with 25x leverage at an entry price of $2,568.12. This trade represents an exposure of over 96 million dollars. The move adds to the growing volume of leveraged positions on Ethereum, reflecting dynamic trading strategies among major market players.

The reported facts highlight a notable short position on ETH executed with high leverage, emphasizing the risks and scale involved in such trades. This transaction underscores the continuing complexity and activity within the crypto derivatives market.