Juan Lichen's 25x leveraged position on ETH attracts the attention of analysts and traders

Famous crypto trader Juan Lichen (known by the nickname Machi) has sparked interest in the trading community by opening a large long position with 25x leverage on Ethereum. This decision reflects the growing trend of using aggressive leverage in derivatives markets, which simultaneously increases volatility risk. After closing positions on Bitcoin and HYPE, Juan Lichen focused his resources on the ETH trade, attracting attention not only from traders but also from analysts monitoring activity of major players on the Hyperliquid platform.

Details of Machi’s Aggressive Bet on Ethereum

Juan Lichen’s strategy demonstrates a high level of confidence in Ethereum’s upward movement, but it carries significant risks. The current position parameters show an unrealized profit of approximately $280,000, but this achievement is accompanied by a critically low safety margin. The liquidation point is set around $2,787, meaning that an unforeseen decline in ETH’s price by a certain percentage could lead to a complete loss of the position and forced liquidation at a loss.

Choosing to hold a 25x leveraged position instead of more conservative strategies indicates that the market participant is willing to accept extreme risks for potentially high returns. This approach is typical of professional traders with sufficient experience managing complex positions, but it also increases systemic risk for the entire market.

Impact of Derivative Platforms on Market Dynamics

Hyperliquid, as a decentralized derivatives platform, concentrates large trader positions, which can significantly influence the volatility of the underlying assets. Activity by major players like Machi and other professional participants often precedes pronounced price movements in Ethereum. Historical data shows that high leverage on such platforms sometimes foreshadows sharp market corrections when many positions are liquidated simultaneously.

Monitoring Hyperliquid’s chain data indicates that whale activity, including Machi’s actions, can generate additional volatility. This phenomenon attracts regulators and experts who discuss the appropriateness of extreme leverage use in crypto derivatives and its impact on market stability.

Current State of the Ethereum Market

According to CoinMarketCap as of February 11, 2026, Ethereum is trading at $1,950 per coin. Over the past 24 hours, the price has decreased by 2.83%, while the 7-day trend shows a more significant drop of 10.66%. Over the monthly period, ETH has exhibited a pronounced downward trend with a loss of about 37.37%, indicating a challenging period for holders of this asset. The current market capitalization of Ethereum stands at $235.9 billion.

This market context makes Juan Lichen’s position even more risky, given the overall downward trend. Maintaining the current price decline trend increases the likelihood of approaching the liquidation point, which could exert pressure on the market through forced position closures.

Systemic Risks and Market Oversight

Analysts and researchers note that the concentration of large positions with high leverage creates conditions for cascade liquidations. When one major position is forcibly closed, it often triggers the closure of other nearby positions, amplifying volatility and causing losses for less experienced market participants. The existing practice of using 25x leverage underscores the need for increased oversight by platforms and regulators.

Monitoring activity of major traders like Machi serves as an important tool for assessing market risks. The market remains in a heightened state of alert for potential fluctuations driven by developments around this position.

Disclaimer: The information provided in this material is for informational purposes only and does not constitute financial advice or a recommendation to act. We recommend conducting thorough research and consulting with professionals before making investment decisions.