Huang Licheng reduces ETH long position by 25 times, takes profit of $405,000, and shifts focus to HYPE for new opportunities

Cryptocurrency trader “Brother Ma Ji” Huang Licheng made an important position adjustment on January 2nd. He reduced his ETH long position with 25x leverage to take profits. Currently, he still holds 8,000 ETH, valued at approximately $24.24 million, with an unrealized profit of $405,000. At the same time, he added a 10x leveraged long position in HYPE, holding 11,888.88 tokens, worth $290,000. This series of actions reflects strategic adjustments by high-leverage traders in the current market.

Considerations for Taking Profits

Why choose to reduce positions now

Huang Licheng’s reduction occurred during an ETH price rally. According to the latest data, ETH is currently priced at $3,023.80, up 1.76% in the past 24 hours and 1.67% over the past 7 days. Choosing to take partial profits amid this upward trend demonstrates pragmatic risk management thinking.

Reducing a 25x leveraged ETH long position indicates he has already realized substantial gains. An unrealized profit of $405,000 may seem modest relative to the position size, but for leveraged trading, locking in such profits is a rational choice—risks associated with high leverage positions accumulate over time.

Details of risk management

From a technical perspective, Huang Licheng set his liquidation price at $2,865.24. This price point is quite interesting:

This buffer reflects his cautious attitude toward risk. Although holding 8,000 ETH remains a large position, setting the liquidation price ensures that even if the market experiences about a 5% pullback, the position won’t be forcibly liquidated. This is a typical approach of experienced traders.

Signal of strategic shift

Why shift to HYPE

Huang Licheng’s newly added HYPE position also uses 10x leverage, with an entry price of $24.69. This move indicates that after reducing his riskier ETH longs, he is shifting focus to other opportunities.

From a trading logic perspective, this may signal:

• Caution about ETH’s short-term trend (even if bullish long-term, leverage positions are controlled)
• A keen sense of new trading opportunities (HYPE, as an emerging project, may have higher volatility opportunities)
• Diversification in capital management (not betting all chips on a single asset)

Market implications

As a well-known crypto trader, Huang Licheng’s moves are often watched by market participants. The key signal from this operation is: even in an ETH bullish environment, experienced traders are choosing to take partial profits rather than continuously add to their positions. This suggests the market may have entered a phase requiring more cautious handling.

Personal opinion: such actions typically reflect high-leverage traders reassessing risk. When whales start reducing positions and shifting to new assets, it often indicates they are preparing for potential market volatility.

Summary

Huang Licheng’s recent operations highlight three key points: first, taking partial profits in an uptrend is a rational risk management approach; second, the setting of the liquidation price demonstrates cautious protection of remaining positions; third, the strategic shift from ETH to HYPE indicates seeking new trading opportunities. For investors paying attention to market sentiment, such whale movements are often valuable signals, but final investment decisions should be based on individual risk tolerance and market judgment.