Whale shifts from a floating loss of 1.6 million to a floating profit of 150,000: the two-day reversal behind the ETH short position

Whale “pension-usdt.eth” has reversed its ETH short position within two days. From an unrealized loss of $1.6 million on January 6 to an unrealized profit of $150,000 on January 8, this whale is flexibly adjusting its positions based on price movements. As Ethereum fell below $3,100, the whale began to steadily reduce its $64 million short position for profit, currently still holding a 3x leveraged short of 8,377.77 ETH (approximately $26.14 million). This reflects the risk management logic behind large positions.

From Unrealized Loss to Unrealized Profit: The Two-Day Reversal

According to the latest information, the whale’s trading trajectory is clearly visible:

The key to this shift is the price decline. When ETH dropped from around $3,200 to below $3,100, the short position shifted from a loss to a profit. The whale then began to reduce its holdings in batches, closing most of the $64 million position.

Why choose to reduce now

The whale’s reduction strategy reflects several characteristics:

• Timely profit-taking: Starting to close positions immediately after reaching profit to avoid market reversals
• Batch operations: Not closing all at once, but retaining some positions to observe subsequent movements
• Risk management: Reducing from a $64 million position to about $26.14 million, lowering systemic risk

Currently, ETH’s price has decreased 4.53% over 24 hours but increased 4.56% over 7 days. This pattern of short-term decline followed by medium-term recovery may have prompted the whale to adopt a conservative reduction strategy—taking profits on most positions while keeping a small short position to hedge against potential further declines.

Risk assessment of current holdings

Characteristics of remaining positions

The whale is still short 8,377.77 ETH with 3x leverage, with a position size of approximately $26.14 million. According to relevant data, the entry price was $3,136.55, and the liquidation price is $4,546.

This means:

• The current price of $3,110 is close to the entry price, with the short position in a shallow profit
• There is a buffer of $1,436 before liquidation
• If ETH rebounds in the short term, the position could quickly turn into a loss

Why retain part of the short position

Although the whale has significantly reduced its holdings, it still maintains a short position worth about $26.14 million. This may be based on the following considerations:

• Expectation of further ETH decline in the near future
• Retaining a small position to potentially profit from additional downside
• This portion of the position, relative to total capital, involves manageable risk

Market signals and reference value

The behavior of this whale may reflect some market signals:

Cautious bearish sentiment: The reduction of large short positions indicates that even during ETH’s decline, the short sellers are considering risk management rather than increasing their positions. This often suggests that the bearish traders lack strong conviction about the continuation of the downtrend.

Support around $3,100: The whale’s decision to significantly reduce positions in this price zone may imply that $3,100 is viewed as an important support or dividing line.

Leverage trading risk warning: The rapid reversal from a $1.6 million unrealized loss to a $150,000 unrealized profit highlights the volatility of high-leverage positions. Even large positions require strict risk management.

Summary

The whale “pension-usdt.eth” demonstrates a typical swing trading logic: holding positions during unrealized losses, quickly reducing positions upon reaching profit targets, and retaining some to seize potential future opportunities. The reversal from a $1.6 million unrealized loss to a $150,000 unrealized profit underscores the importance of price movements and position management. The remaining $26.14 million short position indicates that the whale still has expectations for ETH’s near-term trend but has kept risks within a relatively manageable range. For market observers, such large position adjustments often reflect the market participants’ genuine judgment of price directions.