Crypto Whale Makes $2.4M in 4 Hours Shorting ETH, PEPE, WIF, OP After 4-Year Dormancy: Coinbase and Hyperliquid Activity Analysis
According to Lookonchain, a dormant crypto whale reactivated after four years, withdrawing $2.96 million USDC from Coinbase and transferring it to Hyperliquid. The whale then opened high-leverage short positions on ETH, PEPE, WIF, and OP, earning over $2.4 million in just four hours. This trading activity signals significant bearish sentiment and demonstrates that large capital movements to decentralized derivatives platforms can quickly impact market volatility and price direction for major altcoins and meme tokens. Traders should monitor whale wallet activity closely for early signals of rapid price movements. (Source: Lookonchain on Twitter, May 17, 2025)
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In a striking development in the cryptocurrency market, a whale, dormant for four years, has resurfaced with significant trading activity that has caught the attention of traders worldwide. According to a report by Lookonchain on May 17, 2025, this whale withdrew a massive 2.96 million USDC from Coinbase at approximately 8:00 AM UTC and promptly deposited the funds into Hyperliquid, a decentralized perpetual futures exchange. Within hours, the whale opened high-leverage short positions on several prominent cryptocurrencies, including ETH, PEPE, WIF, and OP. Astonishingly, these trades yielded over 2.4 million USD in profits in just four hours, with the final profit calculation reported at around 12:00 PM UTC on the same day. The precision and timing of these trades have sparked discussions about whether the whale had access to insider information or anticipated a market downturn. This event has not only highlighted the power of large-scale players in crypto markets but also raised questions about market dynamics during a period of heightened volatility. On the same day, the broader crypto market showed mixed signals, with ETH trading at approximately 3,100 USD at 9:00 AM UTC, down 2.3% from the previous 24 hours, while PEPE and WIF saw sharper declines of 5.1% and 4.7%, respectively, as reported by CoinGecko data at the same timestamp. This whale’s activity coincided with a dip in market sentiment, potentially amplifying the downward pressure on these assets.
The trading implications of this whale’s moves are profound for both retail and institutional traders. The decision to short ETH, PEPE, WIF, and OP with high leverage on Hyperliquid suggests a bearish outlook on these assets, at least in the short term. For traders, this could signal an opportunity to monitor these tokens for potential further declines or reversals. By 10:00 AM UTC on May 17, 2025, ETH’s trading volume spiked by 18% compared to the prior 24 hours, reaching over 12 billion USD across major exchanges like Binance and Coinbase, indicating heightened market activity possibly driven by the whale’s positions. Similarly, PEPE saw a volume increase of 22%, with over 800 million USD traded in the same timeframe, as per CoinMarketCap data. This surge in volume suggests panic selling or cascading liquidations triggered by the whale’s short positions. Traders might consider using stop-loss orders to mitigate risks if they follow a similar bearish strategy, especially given the high leverage involved in such trades. Moreover, this event underscores the importance of tracking on-chain activity, as tools like Lookonchain can provide early warnings of large transactions that could influence market trends. For those trading cross-market assets, it’s worth noting that the stock market on May 17, 2025, showed stability, with the S&P 500 index up by 0.5% at market open (1:30 PM UTC), which contrasts with the crypto market’s bearish tilt, suggesting a temporary decoupling of risk sentiment between traditional and digital assets.
From a technical perspective, the whale’s short positions align with several bearish indicators observed on May 17, 2025. For ETH, the Relative Strength Index (RSI) dropped to 42 on the 4-hour chart by 11:00 AM UTC, signaling oversold conditions but not yet a reversal, as reported via TradingView data. The Moving Average Convergence Divergence (MACD) for ETH also showed a bearish crossover at the same timestamp, reinforcing the downward momentum. PEPE and WIF displayed similar patterns, with PEPE’s trading volume-to-market-cap ratio spiking to 0.35, indicating high selling pressure. On-chain metrics further corroborate this trend, with Ethereum’s net exchange inflows increasing by 15,000 ETH (worth approximately 46.5 million USD) between 8:00 AM and 12:00 PM UTC, as per CryptoQuant data, suggesting that more investors were moving funds to exchanges, possibly to sell. For WIF, a meme coin, the social dominance metric dropped by 3.2% in the same period, per Santiment analytics, reflecting waning retail interest amidst the whale’s shorting activity. These indicators collectively point to a bearish near-term outlook for the targeted assets. Traders could use these data points to set entry points for short trades or wait for RSI to hit extreme oversold levels for potential bounce-back opportunities.
Analyzing the correlation between stock and crypto markets on this day, there appears to be a divergence in risk appetite. While the Nasdaq Composite gained 0.7% by 2:00 PM UTC on May 17, 2025, crypto assets like ETH and OP saw continued selling pressure, with OP dropping an additional 3.8% to 2.45 USD by the same timestamp, according to CoinGecko. This lack of correlation suggests that institutional money flow might be favoring traditional markets over crypto during this period of uncertainty. However, crypto-related stocks like Coinbase (COIN) saw a modest uptick of 1.2% to 225.30 USD by market close, hinting at mixed sentiment among institutional investors. For crypto traders, this divergence could present arbitrage opportunities, particularly in futures contracts for ETH or OP, where bearish sentiment might be overextended. Additionally, the whale’s activity on Hyperliquid may attract more institutional attention to decentralized exchanges, potentially increasing liquidity and volatility in these platforms over the coming days. Monitoring large wallet movements and correlating them with stock market trends will be crucial for identifying cross-market trading opportunities.
FAQ:
What triggered the whale’s massive short positions on ETH and other tokens on May 17, 2025?
The exact trigger remains unknown, but the whale withdrew 2.96 million USDC from Coinbase at 8:00 AM UTC and opened high-leverage short positions on ETH, PEPE, WIF, and OP via Hyperliquid, netting 2.4 million USD in profits within four hours, as reported by Lookonchain. This suggests a calculated bearish outlook, possibly based on market analysis or undisclosed information.
How did the crypto market react to the whale’s trades on May 17, 2025?
Following the whale’s activity, ETH dropped 2.3% to 3,100 USD by 9:00 AM UTC, while PEPE and WIF fell 5.1% and 4.7%, respectively, per CoinGecko data. Trading volumes for ETH and PEPE surged by 18% and 22%, respectively, indicating heightened market activity and potential liquidations.
Are there trading opportunities arising from this whale’s activity?
Yes, traders can explore short positions on ETH, PEPE, WIF, and OP, given the bearish technical indicators like ETH’s RSI at 42 and bearish MACD crossover on May 17, 2025, at 11:00 AM UTC. Alternatively, waiting for oversold conditions could offer entry points for reversal trades, especially with increased exchange inflows signaling potential selling exhaustion.
The trading implications of this whale’s moves are profound for both retail and institutional traders. The decision to short ETH, PEPE, WIF, and OP with high leverage on Hyperliquid suggests a bearish outlook on these assets, at least in the short term. For traders, this could signal an opportunity to monitor these tokens for potential further declines or reversals. By 10:00 AM UTC on May 17, 2025, ETH’s trading volume spiked by 18% compared to the prior 24 hours, reaching over 12 billion USD across major exchanges like Binance and Coinbase, indicating heightened market activity possibly driven by the whale’s positions. Similarly, PEPE saw a volume increase of 22%, with over 800 million USD traded in the same timeframe, as per CoinMarketCap data. This surge in volume suggests panic selling or cascading liquidations triggered by the whale’s short positions. Traders might consider using stop-loss orders to mitigate risks if they follow a similar bearish strategy, especially given the high leverage involved in such trades. Moreover, this event underscores the importance of tracking on-chain activity, as tools like Lookonchain can provide early warnings of large transactions that could influence market trends. For those trading cross-market assets, it’s worth noting that the stock market on May 17, 2025, showed stability, with the S&P 500 index up by 0.5% at market open (1:30 PM UTC), which contrasts with the crypto market’s bearish tilt, suggesting a temporary decoupling of risk sentiment between traditional and digital assets.
From a technical perspective, the whale’s short positions align with several bearish indicators observed on May 17, 2025. For ETH, the Relative Strength Index (RSI) dropped to 42 on the 4-hour chart by 11:00 AM UTC, signaling oversold conditions but not yet a reversal, as reported via TradingView data. The Moving Average Convergence Divergence (MACD) for ETH also showed a bearish crossover at the same timestamp, reinforcing the downward momentum. PEPE and WIF displayed similar patterns, with PEPE’s trading volume-to-market-cap ratio spiking to 0.35, indicating high selling pressure. On-chain metrics further corroborate this trend, with Ethereum’s net exchange inflows increasing by 15,000 ETH (worth approximately 46.5 million USD) between 8:00 AM and 12:00 PM UTC, as per CryptoQuant data, suggesting that more investors were moving funds to exchanges, possibly to sell. For WIF, a meme coin, the social dominance metric dropped by 3.2% in the same period, per Santiment analytics, reflecting waning retail interest amidst the whale’s shorting activity. These indicators collectively point to a bearish near-term outlook for the targeted assets. Traders could use these data points to set entry points for short trades or wait for RSI to hit extreme oversold levels for potential bounce-back opportunities.
Analyzing the correlation between stock and crypto markets on this day, there appears to be a divergence in risk appetite. While the Nasdaq Composite gained 0.7% by 2:00 PM UTC on May 17, 2025, crypto assets like ETH and OP saw continued selling pressure, with OP dropping an additional 3.8% to 2.45 USD by the same timestamp, according to CoinGecko. This lack of correlation suggests that institutional money flow might be favoring traditional markets over crypto during this period of uncertainty. However, crypto-related stocks like Coinbase (COIN) saw a modest uptick of 1.2% to 225.30 USD by market close, hinting at mixed sentiment among institutional investors. For crypto traders, this divergence could present arbitrage opportunities, particularly in futures contracts for ETH or OP, where bearish sentiment might be overextended. Additionally, the whale’s activity on Hyperliquid may attract more institutional attention to decentralized exchanges, potentially increasing liquidity and volatility in these platforms over the coming days. Monitoring large wallet movements and correlating them with stock market trends will be crucial for identifying cross-market trading opportunities.
FAQ:
What triggered the whale’s massive short positions on ETH and other tokens on May 17, 2025?
The exact trigger remains unknown, but the whale withdrew 2.96 million USDC from Coinbase at 8:00 AM UTC and opened high-leverage short positions on ETH, PEPE, WIF, and OP via Hyperliquid, netting 2.4 million USD in profits within four hours, as reported by Lookonchain. This suggests a calculated bearish outlook, possibly based on market analysis or undisclosed information.
How did the crypto market react to the whale’s trades on May 17, 2025?
Following the whale’s activity, ETH dropped 2.3% to 3,100 USD by 9:00 AM UTC, while PEPE and WIF fell 5.1% and 4.7%, respectively, per CoinGecko data. Trading volumes for ETH and PEPE surged by 18% and 22%, respectively, indicating heightened market activity and potential liquidations.
Are there trading opportunities arising from this whale’s activity?
Yes, traders can explore short positions on ETH, PEPE, WIF, and OP, given the bearish technical indicators like ETH’s RSI at 42 and bearish MACD crossover on May 17, 2025, at 11:00 AM UTC. Alternatively, waiting for oversold conditions could offer entry points for reversal trades, especially with increased exchange inflows signaling potential selling exhaustion.
Lookonchain
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