Ethereum Updates: Major Investor Faces $10M Loss, Highlighting Crypto's Sensitivity to Diminishing Rate-Cut Expectations and ETF Withdrawals

A whale recently saw their 17,804

long position forcibly closed, resulting in a realized loss exceeding $10 million over the last two months, . This incident highlights the ongoing turbulence in the crypto market, where (ETH) and (BTC) have both experienced sustained downward trends due to changing macroeconomic forecasts and significant institutional withdrawals . Since the middle of October, spot ETF redemptions for both and ETH have picked up speed, indicating a drop in interest from both institutional and retail investors. on Tuesday, reducing net assets from $170 billion on October 6 to $122.29 billion. , with total inflows at $12.88 billion and net assets standing at $19.6 billion.

Technical analysis continues to point to a bearish trend. ($105,872), and a "death cross" has formed as the 50-day EMA dropped beneath the 200-day EMA ($106,998). The daily Relative Strength Index (RSI) has slipped into oversold territory, indicating ongoing downward momentum. At the same time, , a key support, with $98 million in positions liquidated in the last day.

Even with the prevailing bearish sentiment, Ethereum's network is still advancing.

is designed to bring together layer-2 solutions under a unified wallet interface, similar to how the HTTP protocol standardized the internet. Leveraging ERC-4337 account abstraction, EIL aims to simplify cross-chain operations and lessen dependence on centralized systems. Nevertheless, these developments have not eased recent price swings, as following October's rapid price drop.

Major institutions are also influencing the market's direction.

in November, pulling out $523 million and contributing to nearly $3 billion in total crypto ETF outflows. in the past 24 hours, signaling expectations of further declines. of a 25 basis point rate cut at the Federal Reserve's December meeting, a sharp decrease from 93.7% just a month earlier.

The forced closure of the 17,804 ETH position illustrates the vulnerability of leveraged trades in a tightening macroeconomic climate. With ETF outflows continuing and optimism for rate cuts waning, the crypto market remains at risk of deeper pullbacks unless institutional demand recovers.