Recently, a whale has made it abundantly clear that Ethereum is in a tense situation. Address 0xed41 opened a 20x short of 9,940 ETH (approximately $29.3 million) and simultaneously purchased 9,638 ETH (approximately $28.76 million) spot through Hyperliquid and Lighter in the same dimensions, same instant, and in reverse.
Ethereum price is already back
This is important because it shows how smart money currently perceives ETH. After a strong recovery, prices are now hovering just below $3,000, but the overall structure remains damaged. Any gains in recent weeks have been difficult to sustain, with ETH still trading below major moving averages. Trend control has not changed yet, but the momentum is increasing. In other words, recovery is an attempt, not a confirmation.
That uncertainty is precisely reflected in the whale's location. The belief that ETH is approaching an important value zone is implied by spot purchases. However, a 20x short indicates genuine concern about further decline. With so much leverage, the shorts serve more as protection from sharp feet than as decoration.
Will ETH fall to $2,000?
Level is clearly a consideration, although not always. Technically speaking, there is still work to be done. If ETH loses its current range and fails to recover $3,000 definitively, downside liquidity will spread quickly. There is not much resistance in the $2,400 to $2,200 range. For structural and psychological reasons, $2,000 is a realistic magnet.
The fact that this trade is not just a bearish bet is important. It can be used in a wide range of situations, from neutral to defense. Rather than reducing their exposure to ETH, Whales are ensuring flexibility. Spot positions will increase and short positions may be unwound if ETH rises and regains the trend. If ETH rolls over, shorting will actively cushion losses and even profits.
This type of placement typically occurs near an inflection point. Recognize risks rather than predicting direction. For investors, that's the most important lesson. Although ETH has come out of the panic, it is still not safe. Volatility is likely to increase further from here.
