An Ethereum whale placed a high-leverage short trade on Hyperliquid, drawing attention amid ETH price swings and bullish sentiment
Current market data shows that a whale has opened a major short position on Ethereum ETH $4 583 24h volatility: 1.0% Market cap: $552.66 B Vol. 24h: $28.34 B using a popular decentralized perpetual exchange, Hyperliquid HYPE $48.39 24h volatility: 1.3% Market cap: $13.07 B Vol. 24h: $439.33 M . This bold position has sparked debate across the crypto community. Many participants comment on its timing and high risk, especially as the Ethereum price attempts to recover.
Whale’s leveraged short position raises market concerns
It is worth noting that Spot On Chain first reported the short position against Ethereum on May 20, 2025. The report shows a whale depositing 3.876 million USDC into Hyperliquid.
That capital was used seven hours later to open a short position valued at roughly $1.999 million, with a high 25x leverage. This means the investor stands to gain significantly if Ethereum’s price drops below $2,568.12, but risks heavy losses if the price rises.
A whale just deposited 3.876M $USDC into #Hyperliquid to short $ETH with 25x leverage at an entry price of $2,568.12
Follow @spotonchain and track this whale at https://t.co/uueeT3zNXh pic.twitter.com/Wrz7u45rHA
— Spot On Chain (@spotonchain) May 20, 2025
Data from HypurrScan confirms the deposit timing, which has led to speculation among traders about the large investor’s intentions. High-leverage trades like this have become more common on Hyperliquid.
Hyperliquid has built a reputation for enabling fast, large-scale directional bets. However, traders familiar with the platform recall a March 2025 incident where a user lost over $4 million in a similarly leveraged Ethereum short. That case still lingers in the minds of risk-conscious investors.
The bold position has triggered debate on X, with some market participants labeling the move reckless. However, others speculate the whale may possess non-public information.
When someone bets like this they usually know something…..
— Portubeast (@portubeast) May 20, 2025
Ethereum price volatility adds pressure to short strategy
This short bet comes at a time when Ethereum’s price is fluctuating. For context, on May 19 2025, Ethereum rallied to a local high of $2,700. However, it dropped 4% shortly after, triggered by large wallet holders moving out of the asset.
Despite the recent drop, some analysts believe Ethereum is still on course to test the $3,000 level, provided the $2,200 support remains intact. Supporting this outlook, many market participants still maintain that the Pectra upgrade, now live on the mainnet, is a key catalyst driving Ethereum’s price forward.
Adding to the positive sentiment, Ethereum co-founder Vitalik Buterin recently shared ideas for further improving the network. In a post on the Ethereum Research blog, he discussed plans to make Ethereum fast without compromising decentralization or user privacy.
It is worth noting that developers and investors have responded well to this plan. The perception is that it might help support Ethereum price swings with enhanced adoption going forward.
Many in the crypto community are closely watching this risky Hyperliquid bet. If the price of Ethereum goes up, the whale could face big losses. It could also easily affect the broader market.
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