$50M Ethereum Short Shocks Market: Will ETH Crash or Surge?

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$50 Million <a href="https://investment-policy.com/eth-usd/">Ethereum</a> Short Rocks The Market: How Will <a href="https://jpygbp.com/eth-usd/">ETH</a> Price React?

I’m tracking a significant move by a large wallet – 0x50b3. According to data from Lookonchain, they’ve opened a heavily leveraged short position on Ether (ETH), betting against its price with $50.55 million and 25x leverage. Interestingly, this whale also simultaneously placed a $25.27 million long position on Bitcoin (BTC) with 20x leverage, showing a split conviction between the two largest cryptocurrencies.

As I was monitoring the market, Ethereum was trading around $2,193. I’ve also identified key levels where liquidations could occur – around $2,288 for those shorting Ethereum, and $70,325 for long positions in Bitcoin.

$50 Million Short Anchors a Two-Sided Bet

As a researcher, I’ve been tracking a recent trade where someone bet against Ether and for Bitcoin. Specifically, they shorted 23,151 Ether and went long on 323.72 Bitcoin. This strategy will be profitable if Bitcoin’s price stays stable or increases, while Ether’s price decreases.

A large cryptocurrency trader, known as Whale 0x50b3, is betting that Bitcoin will perform better than Ethereum. They’ve initiated a trade where they’re shorting Ethereum (essentially predicting its price will fall) and going long on Bitcoin (predicting its price will rise). Specifically, they’ve shorted 23,151 ETH worth $50.55 million with 25x leverage, and gone long on 323.72 BTC worth $25.27 million with 20x leverage. If the price of Ethereum rises above $2,288.33 or Bitcoin falls below $70,325.36, this trader could face liquidation of their positions.

— Lookonchain (@lookonchain) May 17, 2026

Bitcoin is currently trading around $78,400, with about $8,000 left before hitting a price point where many long positions would likely be closed, potentially causing a price drop.

As a crypto investor, I’m watching Ethereum closely. Right now, its price is only about 5% above the level where a lot of traders could face liquidations. This tells me someone’s either anticipating the price will fall further, or they’re betting on a rapid price increase to force those liquidations quickly.

The unusual pairing implies a relative-value bet on continued ETH underperformance against BTC.

Ether Whales Split on Direction

A large Ethereum trader, connected to Matrixport and who previously made $59 million in profits, increased their holdings to 114,160 ETH, currently valued at $248.65 million.

Even though the market has fallen, a large Ethereum trader connected to Matrixport – who previously profited $59 million – is continuing to increase their bets that the price of ETH will rise. They now hold $248.65 million worth of ETH across four different accounts, though these positions currently have $10.3 million in unrealized losses.

— Lookonchain (@lookonchain) May 16, 2026

This trading position covers four different accounts and currently has $10.3 million in potential losses. Despite recent price declines, the trader remains optimistic and is maintaining their belief that the investment will eventually be profitable.

Similarly, an early Ethereum investor who saw an 803x return on their investment is buying more. This wallet originally received 11,005 ETH from ShapeShift a decade ago when each ETH cost just $3.46.

They sold all of their holdings over a year ago for $2,777, generating $30.56 million in revenue. Since then, the wallet has used $4.26 million USDC to purchase 1,951 ETH at an average price of $2,182 per ETH.

With the recent market downturn, a long-time Ethereum enthusiast—who previously made a remarkable $30.5 million profit (an 803x return on investment)—is now buying more Ethereum as the price drops.

Ten years ago, this investor received 11,005 Ethereum from ShapeShift when each coin cost only $3.46.

Over a year ago, they sold those coins for $30.56 million in USDC, at a price of $2,777 per Ethereum, resulting in a $30.5 million profit.

Currently,…

— Lookonchain (@lookonchain) May 16, 2026

Panic Selling Pressure Mounts

Despite positive signals, there was significant selling activity. A digital wallet connected to World Liberty Financial, which has ties to Donald Trump, sold 4,870 Ether for $10.61 million in USDC at a price of $2,178 per Ether. This sale happened approximately eight hours before the cryptocurrency market experienced a downturn.

As an analyst, I’ve observed a significant movement of funds potentially connected to Gammafund. Over just one hour, two addresses associated with them deposited 10,976 ETH – valued at around $23.9 million – into Binance. This pattern strongly resembles previous instances where institutional investors reduced their risk exposure, suggesting a similar strategy may be at play here.

According to Lookonchain, large investors—possibly associated with Gammafund—are rapidly selling their Ethereum ($ETH). Over the last hour, two wallets likely linked to Gammafund deposited $23.9 million worth of Ethereum into Binance, suggesting they are exiting their positions.

Whether the recent bet against Ethereum was smart or too soon now hinges on whether buyers step in at lower prices. A trader named Matrixport and another experienced investor need to purchase that selling pressure for Ether to maintain support around $2,200.

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2026-05-17 17:41