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Whale Buying Swells After Ethereum’s Shakeout, Setting Up a $4,000 Short‑Squeeze Risk

Fresh on-chain data shows large holders bought nearly 400,000 ETH after $1.3 billion in long liquidations, leaving shorts heavily concentrated near $4,000.

Overview

  • ETH sank to $3,055 on Tuesday, erasing over $1.3 billion in leveraged longs across exchanges, with Binance logging its largest single-day long flush since Oct. 10.
  • Whales accumulated about 394,682 ETH worth roughly $1.37 billion over three days, according to Lookonchain’s on-chain tracking.
  • The largest buyer, an address previously seen borrowing 66,000 ETH from Aave, repurchased 257,543 ETH around $3,480 for about $896 million.
  • Coinglass data shows more than $7 billion in short liquidity clustered around $4,000, creating conditions where a rebound could force cascading short covers.
  • ETH recently traded near $3,421 as analysts flagged a hidden bullish divergence and key support in the $2,800–$3,000 zone, with institutions like Bitmine adding tens of thousands of ETH.