Ethereum Bull Trap: Whale Capitulation Wave Hits After Bullen and Others

Recently, the cryptocurrency market has staged a major spectacle, with several well-known bullish traders and whale investors facing liquidation risks one after another. Among them, Trump’s son Byron was wiped out during a precise market dump while holding nearly 600 million in long positions. When ETH dipped below 2280, it triggered liquidation, causing 200 million in assets to instantly go to zero. This incident shook the entire market and also sounded an alarm for other large bulls.

Whale Liquidation Trauma: Byron and Other Bulls in Trouble

According to on-chain data monitoring, besides Byron, another well-known bullish investor, Yilihua, is also in a precarious situation. Yilihua entered at an average price of 3100, investing 1 billion capital with 2x leverage, establishing a 2 billion long position. Now, as Ethereum’s price drops to around 2200, his principal has been reduced to 500 million. If ETH falls below 1866, all his positions will face forced liquidation. Unlike Byron, Yilihua is still struggling to hold on, and the pressure has already forced him to start taking action.

On-Chain Signals Show Investors Rapidly Stop Loss

After observing that the insider whale was precisely broken by the main force on November 11, Yilihua’s anxiety has significantly increased. Recently, he has made multiple on-chain moves, the most notable being transferring 10,000 ETH to Binance exchange. This signal indicates that once steadfast bullish investors are now considering cutting losses to save their last escape opportunity. Yilihua’s action also reflects market participants’ concerns about the subsequent trend—although he has not yet sold off massively, he is clearly preparing for the worst-case scenario.

Market Risk Chain Transmission: What’s Next?

If Byron and other bullish investors ultimately decide to close all positions, their combined sell-off volume will exert downward pressure on ETH again. Currently, Ethereum’s trading price is around $2,130, and the stop-loss points of these whales are located near key support levels. Any decline could trigger chain reactions of liquidation. The market generally believes that the true bottom of this bear market may only appear after major funds, including Byron, capitulate. This is similar to the logic behind Three Arrows Capital’s $18 billion collapse in 2022—each large player’s exit signifies a reshuffling of the market structure. The once-glorious bull camp during the bull market is now experiencing a winter test. Whether a turning point will arrive depends on whether these investors will give the market a final chance to clear out.