Major crypto trader launches $100M Ethereum short position amid Buterin's commitment to reduce ETH sales
A massive short position faces potential liquidation losses exceeding $1 million as Ethereum prices climb back toward the critical $2,150 threshold.
An influential cryptocurrency whale has established a highly leveraged short position in Ether (ETH) valued at over $100 million, despite Ethereum co-founder Vitalik Buterin's recent promise that the Ethereum Foundation would scale back its token liquidations.
Key takeaways:
- The large trader's position could result in losses surpassing $1 million as ETH's value recovers toward liquidation thresholds.
- Buterin has committed that the Ethereum Foundation will "sell less ETH" following the disposal of more than 60,000 ETH during the earlier part of this year.
Large Ethereum trader risks seven-figure losses on short bet
Data from Hypurrscan reveals that as of Monday, the cryptocurrency wallet identified as '0x50b...' maintained a short position consisting of 47,600 ETH, representing approximately $100.72 million in total value. This particular trade employed around 23x cross-margin leverage, with the trader entering the position at a price point close to $2,094.92.
With ETH exchanging hands at approximately $2,115, the short position was sitting on unrealized losses approaching $994,000. Additionally, the trader had incurred funding costs of roughly $2,145, further increasing the expense of holding this pessimistic wager.
The liquidation threshold for this position was positioned near $2,150, providing minimal margin for market movements against the trade. Even a relatively small upward movement in ETH could drive the whale's losses beyond the $1 million mark and potentially trigger complete liquidation of the short.
This creates a precarious situation for the whale should Ethereum maintain its recovery momentum from the weekend's low point around $2,000, particularly as worldwide risk appetite strengthens following indications of de-escalating tensions between the US and Iran.
Nevertheless, the sheer magnitude of this trade demonstrates that certain large-scale traders remain prepared to place aggressive bearish bets on ETH, even in the face of recent reassurances from prominent Ethereum figures aimed at alleviating market anxieties.
Vitalik Buterin announces Ethereum Foundation will "sell less ETH"
Ethereum co-founder Vitalik Buterin has promised that the Ethereum Foundation will "sell less ETH" as component of a comprehensive strategy to transform the organization into a more streamlined, concentrated and sustainable entity.
This commitment emerged in an extensive post on X where Buterin stood behind the foundation's strategic direction following a series of departures among researchers.
According to Buterin, the EF is prioritizing "longevity over breadth," indicating the organization will curtail expenditures, concentrate its objectives and refrain from functioning as Ethereum's centralized governing body.
The Ethereum Foundation has encountered persistent criticism regarding its token liquidations, with detractors contending that continuous selling can exert downward pressure on ETH prices during periods of market weakness.
Data from Arkham Intelligence indicates the Foundation liquidated approximately 20,000 ETH in 2026, generating over $45 million in proceeds. The organization continues to maintain around 103,000 ETH in liquid treasury holdings, along with an additional 70,000 ETH that has been staked.
Nonetheless, Buterin's statement of reassurance arrives at a time when institutional confidence in Ethereum seems to be diminishing.
Throughout 2026, numerous major stakeholders have reduced their ETH allocations amid disappointing price performance and a prolonged underperformance relative to Bitcoin spanning multiple years.
Reports indicate that Harvard Management Company divested its $87 million Ethereum ETF stake after holding it for merely one quarter, while Goldman Sachs reduced its ETH ETF positions by approximately 70%, maintaining around $114 million in remaining investments.
Spot Ethereum ETFs have experienced ongoing capital hemorrhaging, documenting over $295 million in net outflows throughout May and exceeding $945 million in total withdrawals year-to-date in 2026.
David Hoffman, co-founder of Bankless and among Ethereum's most prominent longtime supporters, revealed he has liquidated all his personal ETH positions, lending symbolic significance to worries that even investors deeply rooted in the Ethereum ecosystem are reevaluating their commitment.
Despite these concerns, certain market analysts, including Tanaka, maintain their perspective of Ethereum as a compelling long-term investment opportunity, contending that its fundamental on-chain economic infrastructure remains challenging for competing blockchain platforms to replicate.
Ethereum continues to serve as the foundation for a substantial portion of cryptocurrency's genuine economic activity, supporting approximately $43 billion in DeFi liquidity, more than $165 billion in stablecoin circulation, and about 55% of tokenized assets monitored across public blockchain networks, based on data compiled by Token Terminal.