20x ETH Long Emerges as Ethereum Crashes 10%, Reversal Coming?

Ethereum has crashed below $2,400, but a whale's contrarian approach is drawing attention in the market.

Ethereum fell to a low of $2,245 on Saturday as selling intensified in the crypto market. As Ethereum fell in the market, Lookonchain revealed a whale opened a 20× long on 6,000 $ETH worth $14.37 million.

The whale's approach refers to a contrarian strategy, obviously made in good faith that prices might soon rebound and comes as traders and investors capitulate across the market.

According to Lookonchain, Trend Research, which previously bought 651,310 $ETH worth $1.56 billion, appears to be capitulating as it deposited 10,000 $ETH worth $24.34 million into Binance.

Ethereum price crashes

Over $2.45 billion in crypto positions were liquidated in 24 hours, with the largest single liquidation being a $222.65 million $ETH USD order on the Hyperliquid exchange.

Ethereum led the sell-off in the market, with over $1.07 billion in positions wiped out in the last 24 hours as it fell more than 10%, followed by about $774 million in Bitcoin.

At press time, $ETH was down 7.12% in the last 24 hours to $2,341 and down 20% weekly.

Losses increased following forced selling in the derivatives markets. Liquidations rose as Ethereum fell, compounding pressure on spot prices.

Reversal coming?

Liquidation data from CoinGlass shows the sell-off was one-sided, with long positions accounting for the majority of that seen in the last 24 hours.

Long positions accounted for the majority of liquidations, coming in at $2.27 billion, with shorts accounting for only $180 million, suggesting bullish traders were caught unawares. The massive long liquidations coinciding with thin liquidity might suggest a reset following a leverage flush.

RSI indicators are now at oversold levels, below 30, hinting at the possibility of a relief rally in the coming sessions.