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In the past couple of days, there has been an interesting move— a major whale shifted from a long hedge on ETH to a short position, and currently this position has already lost $240,000. Such a switch from long to short is often not a trivial matter, indicating that institutions' outlook on the market has indeed changed.
What’s more concerning is that these large short positions usually come with a risk of liquidation. If the price moves in the opposite direction, the chain reaction of forced liquidations could trigger a market-wide sell-off, increasing downward pressure. From a trading perspective, this kind of signal releases a bearish sentiment—whales showing unrealized losses and maintaining a bearish outlook, which market participants should be cautious of potential selling pressure. In the short term, such major moves often become key focus points for traders.