Anonymous whale places $44 million bet on Ethereum price drop
An anonymous cryptocurrency whale opened a massive short position against Ethereum (ETH) on June 2, 2026, wagering approximately $44 million that the asset’s price will continue its downward trajectory. The blockchain analytics platform Onchain Lens detected the trade, which involved 21,948 ETH at 10x isolated leverage. The position was entered on the decentralized exchange Hyperliquid near the $2,004 price mark, with a liquidation point set at $2,339.76.
The aggressive bearish bet follows a period of heightened volatility, with ETH down more than 13% month-on-month. Market sentiment shifted sharply after Strategy disclosed its first Bitcoin sale in years, breaking a long-held “never-sell” stance. This move rattled the market and prompted large holders to de-risk their portfolios, causing Ethereum to feel the spillover effects. As institutional movements face greater scrutiny, traders are also tracking how Ethereum and Solana face new federal rules that could impact future market liquidities.
Whale distribution signals shift in Ethereum market sentiment
The $44 million short trade is not the only sign that major players are retreating. Hours later, a second wallet—identified as 0xc1b6—moved 5,000 ETH worth roughly $9.8 million into the Kraken exchange as the price slipped toward $1,960. This trader had originally purchased approximately 5,003 ETH near $1,999 during March and April, and the transfer suggests a preparation to exit that would lock in a loss of nearly $200,000.
Data from Santiment supports the narrative of distribution among large-scale holders. The supply of ETH held by whales, excluding exchange balances, edged down from 125.02 million ETH on June 1 to 124.98 million just 24 hours later. While the move is statistically small, it occurred alongside the Kraken deposit, signaling that whales are favoring distribution over accumulation at current price levels.
Liquidation maps highlight resistance at the $2,000 level
Ethereum is currently struggling to maintain the psychological support of $2,000. Data from Coinglass shows the Binance ETH/USDT perpetual market is heavily skewed, with $1.82 billion in cumulative short liquidation leverage stacked against just $781.93 million on the long side. This imbalance creates a “heavy” market floor that is easily broken when long liquidations cascade into thin support.
The immediate risk remains to the downside for those holding long positions. If the price weakens further toward $1,930, a zone containing roughly $523.96 million in long leverage could be triggered for liquidation. This mechanical pressure is a primary reason why ETH has repeatedly failed to hold the $2,000 mark in recent trading sessions.
Hyperliquid traders move to fade the bearish momentum
Despite the whale’s massive short position, flow data on Hyperliquid suggests a growing divergence. Over the past six hours, perpetual flows have shown traders “fading” the bearish move. While Bitcoin absorbed net selling pressure of $15.61 million, Ethereum drew net buying pressure of roughly $9.10 million on the platform. This suggests some traders are using the Bitcoin-specific selloff as an opportunity to bid on ETH.
This contrarian activity puts the $44 million short position in a precarious spot. With $1.82 billion in short leverage sitting above the current price, a sustained rally back through $2,000 could trigger a short squeeze. If the “quiet buyers” on the other side of the trade are successful, they could force the whale’s 21,948 ETH position into a liquidation event at $2,339.76.
High-leverage risk has been a recurring theme on the exchange. Only days ago, on May 28, a portion of Taiwanese singer Jeffrey Huang’s 25x leveraged long position was reportedly liquidated. Monitoring these high-stakes liquidations is essential for understanding the Hyperliquid crypto tokens surge seen earlier in May, which was driven by similar volatility patterns.
A history of institutional-sized bets on Hyperliquid
This $44 million short is part of an ongoing trend of massive bearish positions appearing on Hyperliquid. On May 25, a trader opened a $100.3 million short using 23x cross leverage at an average entry price of $2,094.92. More recently, on May 28, an anonymous trader named “Evaded” opened a $25.5 million ETH short with 25x leverage while maintaining a $71.5 million short on Bitcoin.
These massive trades highlight Hyperliquid’s growing role as a venue for high-stakes institutional-grade games. The platform itself has previously noted its ability to handle such volume, stating that whale shorts exceeding $450 million are only possible within its infrastructure. For now, the Ethereum price sits at a stalemate between the whales betting on a deeper crash and the traders betting on a sharp reversal.