Ethereum Whale Borrows 4,000 ETH on Aave to Initiate New Short Position

A well-known Ethereum whale is betting against the recent ETH price recovery. On-chain analyst @ai_9684xtpa reported via X that this whale borrowed 4,000 ETH (worth about $7.25 million) from the DeFi lending platform Aave. The analyst noted the whale borrowed this ETH specifically to open a new short position, signaling a cautious or bearish outlook.

Whale’s Rocky Recent Trades: Profits Followed by Losses

This isn’t the whale’s first big move lately. They’ve been actively swing trading ETH since mid-April. Earlier trades reportedly netted them over $1 million in profit. However, their luck seemed to turn between April 22nd and 25th.

During that time, the whale shorted ETH but got caught out when the price went up, forcing them to buy back higher. This resulted in losses totaling around $382,000 on those recent shorts. Now, despite those losses, they’re placing another large short bet

Data showed that the whale’s average short selling price was $1,731, while the closing price reached $1,778.70, culminating in a realized loss of $14.23 million from an earlier 8,000 ETH position.

Related: What Do Ethereum Whales Know That We Don’t

How ETH Price Reacted This Time

Despite these activities, Ethereum traded higher during the latest session, trading at around $1,806 after registering a 1.85% daily gain. CoinMarketCap data showed a rise in Ethereum’s market capitalization to $218.05 billion, while daily trading volume climbed 5.05% to $15.88 billion. The network’s circulating supply remained stable at 120.72 million ETH, aligning with total supply figures.

A volume-to-market cap ratio of 6.95% pointed to active trading conditions. During the session, ETH dipped to $1,773 before the buying pressure pushed the price to nearly $1,820, showing a volatile but strengthening market environment.

What Exchange Flows Tell Us About ETH Supply

Looking at broader on-chain data provides more context. Recent CoinGlass figures show that Ethereum flowing into exchanges and out of exchanges has been roughly balanced lately. This is different from late 2023/early 2024 when more ETH was consistently leaving exchanges (often seen as bullish, meaning less supply available to sell).

Source: Coinglass

Now, with flows balanced near the $1,800 price level, it raises questions about whether selling pressure from exchanges might pick up again if the price tries to move much higher.

Related: Whale Buys $5.88M Worth of Ethereum Amid Market Panic: A Golden Opportunity?

Are More Users Engaging with the Ethereum Network?

Meanwhile, user activity on Ethereum seems to be picking up. CryptoQuant data showed a resurgence in Ethereum’s active addresses.

After periods of fluctuating activity between mid-2022 and early 2024, the number of active addresses is climbing again. However, past data showed that spikes in user engagement did not turn into sustained price gains, leaving the possible impact of this trend uncertain.