The cryptocurrency market experienced a sharp decline, with Ethereum falling below $3,100 and Bitcoin dropping under the critical $100,000 level. This triggered widespread liquidations and fear-driven selling. Panic spread rapidly across the market, turning sentiment bearish as traders rushed to reduce their holdings, price predictions disappeared from social media, and investors exited riskier assets. Such moments often see emotions overpower fundamentals, and this week was a clear example of that.
However, not all market participants react the same way during times of intense fear. Some prominent traders are already adjusting their strategies, suggesting that strategic moves may be happening beneath the surface of the panic. One such trader is the well-known Anti-CZ Whale, who gained fame after shorting ASTER right after Changpeng Zhao publicly announced his purchase of the token. That bet paid off handsomely when ASTER briefly surged and then plummeted, earning the whale tens of millions in unrealized profits.
In a significant shift, this trader has now switched from shorting Ethereum to taking a long position, showing renewed confidence despite the market’s emotional turmoil. As fear peaks, experienced players may be preparing for the next phase—raising the question: is this a sign of capitulation or an opportunity?
According to Lookonchain, the Anti-CZ Whale has made a notable portfolio change, moving from shorting Ethereum to a long position worth 32,802 ETH (approximately $109 million). The whale continues to hold a short position of 58.27 million ASTER (around $59.7 million), indicating a belief that ASTER may remain weak despite recent swings. Additionally, they hold a short of 1.99 billion kPEPE (about $11.3 million), betting against speculative memecoins during uncertain times. A smaller long position in 130,566 DOGE (roughly $21,500) seems more symbolic than strategic, possibly serving as a hedge or sentiment indicator rather than a strong conviction.
The standout move is the Ethereum long, suggesting the whale views the drop below $3,100 as an oversold condition rather than a structural downturn. Taking such a position amid peak fear indicates an expectation of recovery once forced liquidations ease and liquidity stabilizes. While overall sentiment remains fragile, this shift implies that savvy investors may already be positioning for a rebound, reinforcing Ethereum’s status as a core asset even in turbulent times.
Ethereum is trying to stabilize after a sharp fall below $3,500, with prices now hovering around $3,300. This level aligns with the 200-day moving average, a key support zone for bulls to defend. Recent trading shows high volatility and heavy selling volume, confirming that panic-driven liquidations drove the decline rather than a fundamental trend change.
The sell-off followed a series of lower highs in October, indicating weakening momentum before the breakdown. The 50-day and 100-day moving averages are declining and currently above the price, adding pressure and reinforcing the short-term bearish outlook. A recovery above the 50-day average would signal strength, but Ethereum needs to reclaim $3,500 to regain bullish control.
Trading volume has spiked dramatically, pointing to capitulation behavior often seen near market turning points. The price wick near $3,150 suggests buyers stepped in aggressively at the lows, consistent with accumulation patterns by experienced traders. If Ethereum holds above the 200-day moving average and builds a base here, it could set the stage for a potential recovery.A relief rally is underway. However, if the price consistently falls below $3,150, it could drop further toward $2,900, as there is limited trading activity below current levels. Featured image from ChatGPT, chart from TradingView.com.
Frequently Asked Questions
Of course Here is a list of FAQs about the situation with the major investor designed to be clear and helpful for all levels of understanding
General Beginner Questions
1 Who is this antiCZ investor
This refers to a wellknown influential investor in the crypto space who has been publicly critical of Changpeng CZ Zhao the former CEO of the Binance exchange
2 What does it mean that they are antiCZ
It means they have frequently expressed disagreement with CZs business practices the way Binance operates or his influence over the crypto market
3 What is a short position
A short position is a bet that the price of an asset will go down Investors profit by selling high first and then buying back at a lower price
4 What are meme coins
Meme coins are cryptocurrencies that originated from or are inspired by internet jokes or memes Their value is often driven more by social media hype and community sentiment than fundamental technology
5 Why is this investors move a big deal
Its significant because a prominent critic of a major industry figure is making a large confident bet on Ethereum a leading cryptocurrency while simultaneously betting against more speculative assets This sends a strong signal about their market outlook
Strategy Market Analysis Questions
6 Why would someone invest in Ethereum but short meme coins
This is a classic strategy go long on assets you believe have strong fundamentals and longterm value while going short on assets you believe are overvalued or purely speculative Its a way to hedge and express a belief in a quality over hype market
7 Does this mean Ethereum is a safe investment
No single investment is completely safe However this move suggests that a sophisticated investor views Ethereum as a more serious and fundamentally sound project compared to highly volatile meme coins
8 What does this tell us about the investors overall market view
It suggests they are cautiously optimistic They see potential for growth in established technologicallydriven cryptocurrencies but are skeptical of the sustainability of the meme coin frenzy
9 Isnt it contradictory to be optimistic and still hold short positions
Not at all