Ethereum has fallen below crucial support levels, and market sentiment is worsening as major cryptocurrencies continue to decline. Analysts are increasingly warning of a new bear market, pointing out that both Bitcoin and top alternative coins have lost key technical zones that previously supported the market’s structure. ETH, now at its lowest price in months, is facing the impact of cascading liquidations, heavy selling, and a sharp drop in investor confidence.
Adding to the uncertainty, Lookonchain reports that a prominent trader known as the Anti-CZ Whale has seen over $61 million in profits vanish in just 10 days. This trader gained fame for taking large short positions right after CZ bought ASTER, a strategy that paid off until the recent market downturn reversed his gains.
The Anti-CZ Whale’s losses highlight the pressure on Ethereum. According to Lookonchain, the whale’s total profit on Hyperliquid has dropped from nearly $100 million to just $38.4 million, erasing more than 60% of gains in under two weeks. This sharp reversal shows how even experienced traders are struggling amid the volatility and reflects the broader strain on Ethereum as it declines.
For Ethereum, maintaining its current support level is critical. The price drop has already hurt long positions, short-term holders, and leveraged traders. If ETH breaks below this support, it could trigger more forced selling and deepen market losses.
Ethereum is now testing a major weekly support zone around $2,680. After being rejected from the $4,500 level earlier this quarter, ETH has formed a series of lower highs and lows, confirming a medium-term downtrend. It has fallen below the 50-week moving average and is now resting on the 100-week moving average, a key level in past market corrections.
Trading volume has increased during the recent decline, indicating fear-driven selling rather than orderly profit-taking. This matches the broader market’s thin liquidity and high volatility. If ETH drops below $2,650, it could test the $2,300–$2,400 range, which was a strong accumulation area in previous cycles.
However, the weekly chart shows that ETH is in a historically oversold zone, similar to periods in mid-2022 and late-2023 that eventually led to reversals. For now, Ethereum needs to hold above this weekly support to avoid a deeper decline and keep the door open for a potential recovery.
Frequently Asked Questions
Of course Here is a list of FAQs about the investors significant loss designed to be clear and helpful for both beginners and more advanced readers
BeginnerLevel Questions
1 What exactly happened in this news story
A major investor who was famously betting against Binances founder CZ lost 61 million The money was lost because the prices of two cryptocurrencies they heavily invested in Ethereum and XRP dropped sharply
2 What does betting against CZ mean
It means this investor was taking financial positions that would profit if companies or projects associated with Changpeng CZ Zhao performed poorly or lost value
3 What is a long position
A long position is when you buy an asset expecting its price to go up so you can sell it later for a profit This investor was long on ETH and XRP meaning they were betting on their prices rising
4 How can 61 million in profits just vanish
In trading profits often exist only on paper until you actually sell the asset When the price of the assets you hold falls the value of your investment decreases and those paper profits are erased If you sell at the lower price the loss becomes real
5 What are Ethereum and XRP
They are two of the largest and most wellknown cryptocurrencies after Bitcoin Ethereum is a platform for smart contracts and decentralized apps while XRP is a digital payment network and protocol
Intermediate Advanced Questions
6 What is the connection between betting against CZ and holding ETHXRP
These can be separate strategies An investor can be bearish on one part of the market while being bullish on another This story shows that both of their major bets went wrong
7 What does profits erased tell us about risk management
It highlights the danger of not taking profits off the table Even large successful paper gains can disappear quickly if you dont have a strategy to secure them during a market downturn emphasizing the need for stoploss orders and diversification
8 Could this loss have been prevented with hedging
Potentially