Ethereum Whale Goes All-In: Massive Leverage Bet on stETH Raises Eyebrows

Lookonchain reported that a major Ethereum whale has withdrawn 32,395 ETH worth approximately $103.75 million from Binance. This move follows an earlier strategy where the same whale borrowed $45 million USDT to buy stETH, indicating an aggressive leveraged positioning rather than a simple withdrawal.

The whale who borrowed 45M $USDT to buy $stETH just withdrew another 32,395 $ETH($103.75M) from #Binance.

He may deposit it into #Aave and borrow $USDT to buy even more $stETH.https://t.co/NlU6ONbEaE pic.twitter.com/GTwy8oBYNv

— Lookonchain (@lookonchain) January 19, 2026

The transaction suggests preparation for another round of leverage rather than profit-taking.

The Strategy Behind the Move

The whale is likely using a looping strategy involving Aave and stETH. The process typically involves depositing ETH or stETH as collateral, borrowing USDT against it, and then using that borrowed capital to buy more stETH.

By repeating this cycle, the whale effectively turns standard ETH staking exposure into 2x to 3x leveraged staking, amplifying returns without selling ETH.

Why stETH Is Central Here

stETH, issued by Lido, represents staked ETH and earns staking rewards while remaining liquid. This makes it ideal collateral for DeFi lending protocols like Aave.

With average staking yields around 3.5% annually, leveraged exposure allows large holders to significantly boost effective returns, assuming ETH price remains stable or continues upward.

Current Risk Profile

According to on-chain data, the whale’s health factor sits around 1.36. While this is above liquidation levels, it leaves little margin for error.

A sharp ETH price drop of roughly 25% could trigger liquidations, forcing assets to be sold at unfavorable prices. This makes the strategy highly profitable in bullish conditions but dangerous during sudden market downturns.

What This Signals to the Market

Such large-scale leverage usually reflects strong bullish conviction. Whales typically deploy these strategies when they expect higher prices or long periods of price stability.

In the context of the broader 2026 post-halving rally, this move suggests confidence in Ethereum’s medium-term upside and continued demand for staking-based yield strategies.

Community Reaction

Crypto traders are split in their response. Some view this as a smart use of capital efficiency in DeFi, while others warn that heavy leverage has historically led to cascading liquidations during volatility spikes.

Either way, the move has drawn attention as one of the more aggressive ETH leverage plays seen recently.

Bigger Picture

This activity highlights how DeFi enables sophisticated financial strategies previously reserved for institutions. At the same time, it underscores how leverage can magnify both gains and losses.

As long as ETH remains strong, the whale benefits. If volatility returns, this position could quickly become a market-moving event.