On-chain data reveals that a whale address, already holding a significant amount of ETH, has executed a leveraged buy over the past day by borrowing 100 million USDT from the decentralized lending protocol Aave. The borrowed funds were immediately used to purchase 59,742 ETH at an average price of $1,681, reflecting a strategy to increase ETH exposure through borrowing.
The address now commands a total of 133,800 ETH, valued at approximately $212 million based on current market prices. However, since the purchase, ETH’s price has edged lower, leaving the newly opened position with an unrealized loss of around $6 million. While unrealized losses do not represent an actual cash outflow, they indicate that the market price has dipped below the whale’s entry point.
Aave’s lending mechanism requires that collateral maintain a certain threshold to avoid liquidation. According to on-chain data, the two active borrowing positions held by this whale have liquidation prices near $1,356 and $1,170 respectively. Should ETH drop to these levels, the protocol would automatically sell the collateral to repay the debt, potentially forcing the whale to realize the losses. This setup places considerable attention on the whale’s next moves and the broader market direction for ETH.