Ethereum (ETH) and Solana (SOL) Targeted as Crypto Whale Opens $70M Short Position

A large cryptocurrency trader has gained market attention after opening considerable leveraged short positions on Ethereum (ETH) and Solana (SOL). The positions, underscored through on-chain and derivatives data, signal a significant bearish bet on two of the largest altcoins by market capitalization.

The whale opened an ETH short position valued at roughly $48.3 million and a SOL short position worth almost $21.5 million.

Both positions were carried out using 20x leverage, bringing the merged exposure to around $70 million. The trades were supposedly placed on perpetual futures markets, which allow investors to speculate on price actions without keeping the underlying assets.

Also Read: Ethereum Whales Accumulate 5,970 ETH, Strengthening Case for $2,400 Move

Ethereum and Solana Market Context

According to CoinMarketCap, at the time of writing, ETH is trading at $2,123.2, with 0.56% decrease in rate. The market cap of the coin has exceeded $257.87 billion, and the volume of the asset is around $49.98 billion.

According to CoinMarketCap, at the time of writing, SOL is trading at $91.45, with 6.42% decrease in rate. The market cap of the coin has exceeded $51.83 billion, and the volume of the asset is around $51.83 billion.

ETH has lately experienced sideways price action after a larger market pullback, with the price struggling to reclaim key resistance levels.

Solana, meanwhile, has exhibited mixed signals in terms of rebound attempts after renewed selling pressure. Both assets have been sensitive to macroeconomic developments, equity market movements, and changes in overall cryptocurrency market sentiment.

Large leveraged spots by whales are usually closely observed by investors, as they can display strong conviction or impact the short-term market metrics.

Such positions also carry a higher risk, especially during times of increased volatility. Sudden price reversals can affect liquidations, possibly boosting value swings in either direction.

The size of the ETH and SOL short positions highlights continued high activity in the cryptocurrency derivatives industry. Open interest across major exchanges has increased, indicating that investors are actively positioning for directional moves rather than remaining sidelined.

Also Read: Ethereum (ETH) Faces Critical Breakdown: Can Bulls Hold $2,000?