Ethereum Whales Exit: Leverage Unwinds as Risk Appetite Fades

A significant shift is underway in Ethereum’s derivatives market. Whale address 0x89Da recently closed a long position worth 21,683 ETH (~$93M) with an approximate realized loss of $6.6 million. This address also withdrew 9.6 million USDC from Hyperliquid, marking a full exit from the platform.

Given Hyperliquid's reputation for leveraged Ethereum trades, this move could have broader implications for market sentiment and liquidity. At the time, Ethereum was consolidating just below the $4,500 mark, still near its annual highs.

Historically, such exits by whales and reduced leveraged positions have preceded market cycle tops. As funding rates remain high, big players often trim exposure to minimize risk — a trend mirrored in 0x89Da’s actions.

In essence, this whale's exit may signal an early derisking phase. If more major players follow suit, it could cause a decline in open interest, thereby reducing the leverage that helped fuel Ethereum’s recent price surge.