ETH Whale Machi Big Brother Faces Partial Liquidation Amid Market Volatility

In the ever-volatile world of cryptocurrency trading, prominent Ethereum whale Machi Big Brother, known on social platforms as @machibigbrother, recently encountered a significant setback. According to a detailed on-chain analysis shared by @OnchainLens on December 18, 2025, Machi experienced partial liquidation on his highly leveraged 25x long position in ETH. This event unfolded amid sharp market fluctuations, prompting him to also manually close portions of his position. The incident has sparked discussions among traders about potential shifts in market sentiment, raising the intriguing question: Is it time to consider shorting ETH? This development highlights the risks of high-leverage trading in the crypto space, where rapid price swings can lead to substantial liquidations.

To contextualize this, let's dive into the trading dynamics at play. Ethereum's price has been under pressure, with recent data showing ETH trading around key support levels. For instance, on-chain metrics from platforms like CoinMarketCap indicate that ETH's 24-hour trading volume surged during this period, reflecting heightened activity as traders reacted to the volatility. Machi's position, leveraged at 25x, amplified both potential gains and losses, a common strategy among whales but one that demands precise timing. The partial liquidation likely occurred when ETH dipped below critical thresholds, such as the $3,000 mark, based on historical patterns observed in similar events. Traders monitoring on-chain wallets, as referenced in the analysis from @OnchainLens, noted unusual transaction flows from Machi's address (0x020ca66c30bec2c4fe3861a94e4db4a498a35872), including outflows that suggest a strategic unwind to mitigate further losses.

Analyzing ETH Price Movements and Trading Opportunities

From a technical analysis perspective, ETH has been testing resistance at approximately $3,200, with support holding firm around $2,900 in recent sessions. The relative strength index (RSI) for ETH/USDT pairs on major exchanges hovered near oversold territory at 35, signaling potential exhaustion among sellers as of December 18, 2025. This aligns with the timing of Machi's liquidation, where a sudden drop in ETH's value—down about 5% in a 24-hour window—triggered margin calls. For traders eyeing short positions, this could present an opportunity if bearish momentum continues, especially with macroeconomic factors like interest rate hikes influencing broader market sentiment. However, caution is advised; on-chain data reveals increasing accumulation by other large holders, which might counteract downward pressure and lead to a rebound.

Looking at cross-market correlations, ETH's performance often mirrors Bitcoin's (BTC), which saw a similar dip, trading down 4% to around $90,000 during the same timeframe. Trading pairs like ETH/BTC showed ETH underperforming slightly, with a ratio dipping to 0.035, indicating relative weakness. Institutional flows, as tracked by various analytics tools, suggest that while some funds are reducing exposure, others are positioning for a year-end rally. For those considering shorts, key indicators to watch include the moving average convergence divergence (MACD) showing bearish crossovers and elevated funding rates on perpetual futures contracts, which were positive but declining, hinting at fading bullish conviction.

Strategic Insights for Crypto Traders

Beyond the immediate event, this liquidation underscores broader trading strategies in the ETH ecosystem. Machi, a well-known figure for his bold moves, may be signaling a tactical retreat rather than a full capitulation. Traders could interpret this as a contrarian buy signal, especially with Ethereum's upcoming upgrades potentially boosting network activity and on-chain metrics like daily active addresses, which rose 10% week-over-week. Conversely, if shorting is on the table, setting stops above recent highs around $3,400 could manage risks. In terms of volume, ETH's spot trading volume exceeded $20 billion on December 18, 2025, per aggregated exchange data, providing liquidity for both long and short entries. Ultimately, while Machi's partial close might tempt bears, the crypto market's resilience often turns such events into buying opportunities, emphasizing the need for diversified portfolios and robust risk management.

This episode also ties into larger trends, such as the impact of leveraged trading on market stability. With ETH's market cap fluctuating around $350 billion, events like these can influence sentiment across altcoins, potentially creating ripple effects in pairs like ETH/SOL or ETH/BNB. For SEO-optimized trading advice, focus on real-time indicators: monitor support at $2,850 for breakdown risks or resistance at $3,100 for breakout potential. Whether shorting or longing, always back decisions with on-chain evidence and avoid over-leveraging to prevent similar liquidations.