Whale reduces 2,700 ETH long positions, keeping 5,000 ahead of the new liquidation threshold

A whale just closed 2,700 ETH long positions worth $5.54 million to avoid liquidation, indicating strong pressure in the crypto market and in the short-term outlook for ETH.

A major address associated with Machi has drawn attention after sharply cutting leverage positions on Ethereum. New data from Lookonchain shows this move happened very quickly, reflecting risk-management governance pressure as the price of ETH fluctuates.

ETH whales reduce leverage to avoid liquidation

Lookonchain, an account specializing in tracking on-chain data, said that in the past 4 hours Machi has closed 2,700 ETH, equivalent to about $5.54 million, to avoid liquidation. After this transaction, the related wallet still holds a long position of 5,000 ETH worth roughly $10.22 million, with a new liquidation price of $2,031.52.

Lookonchain noted: “Machi once said, ‘I never lose. I always win or get liquidated.’ But he also fears liquidation — in the past 4 hours, he has closed 2,700 ETH worth $5.54 million to avoid being liquidated. He is still holding a long position of 5,000 ETH worth $10.22 million, with a new liquidation price of $2,031.52.’”

Cash flow suggests a short-term defensive strategy

Proactively closing part of the position shows that the current priority is not to expand profits, but to push the liquidation price farther away to increase the safety margin. This is a familiar tactic used by whales when the crypto market sees sharp volatility and the risk of leverage wipeouts rises.

ETH price will face pressure in a sensitive zone

The $2,031.52 liquidation level creates a threshold that needs close monitoring, because if the price of ETH drops deeply into this area, selling pressure could increase very quickly. Conversely, if Ethereum manages to hold the support zone above it, the earlier reduction in leverage could help the remaining position stay more stable in the short term.

This whale move suggests that market sentiment remains cautious even though Ethereum’s trend has not been fully broken. In the short term, the price of ETH is likely to continue swinging strongly, and the crypto market will be especially sensitive to large leveraged orders.

Source: X