Cryptocurrency markets faced a severe downturn, with Ethereum falling below the $3,100 level and Bitcoin losing the crucial $100,000 level, triggering widespread liquidations and fear-driven selling. Panic quickly spread throughout the market, with traders rushing to reduce exposure, price targets disappearing from social media, a flurry of exits from risky assets, and sentiment turned sharply bearish. Emotions often outweigh fundamentals in moments like this, and this week was a stark reminder of that dynamic.
Related books
However, even in times of extreme fear, not all market participants behave in the same way. Some prominent players have begun to change their stances, suggesting that strategic positioning under panic may already be underway. This includes the famous anti-CZ Whale. This trader gained attention by actively shorting ASTER immediately after Zhao Changpeng made a public post announcing his purchase of ASTER. The trade was a big payoff, as ASTER briefly soared and then fell sharply, giving the whale tens of millions of dollars in unrealized gains.
Now, in a notable change, the trader has gone from short to long Ethereum, showing renewed confidence despite the market’s emotional collapse. As fear reaches its peak, sophisticated players may already be preparing for the next stage. The question arises: Is this a capitulation or an opportunity?
Whales switch to ETH as market panic peaks
According to Lookonchain, the famous anti-CZ Whale made a notable portfolio change, going from short Ethereum to taking long positions worth 32,802 ETH (approximately $109 million). Currently, Whale maintains a 58.27 million ASTER short (approximately $59.7 million), indicating confidence that ASTER weakness may continue despite recent volatility.
In addition to this, the whale holds 1.99 billion kPEPE short (approximately $11.3 million), a bet against speculative meme coin flows amid uncertainty. On the other hand, a small long on 130,566 DOGE (around $215,000) seems more symbolic than directional and could act as a hedge or sentiment gauge rather than a major confidence play.
The standout move was clearly long ETH, indicating that whales view Ethereum’s decline below $3,100 as oversold rather than structurally bearish. Taking such positions at a time when fear is at its peak suggests hope for a recovery once liquidations subside and liquidity stabilizes. Although broader sentiment remains fragile, this shift suggests that sophisticated capital may already be poised for an eventual recovery, reinforcing ETH’s role as a core asset even during severe market stress.
Related books
ETH price technical outlook: testing key supports as panic selling eases
Ethereum is trying to stabilize after a sharp drop below the $3,500 area, with the price currently reacting around the $3,300 zone. This level is roughly in line with the 200-day moving average (red line), making it an important support area for bulls to defend. Recent candlestick structure shows intense volatility and sell-side volume, confirming that panic liquidations, rather than a fundamental change in trend, are the main driver of this move.
An aggressive flash followed a series of lows throughout October, indicating that pre-breakdown momentum was weakening. The 50-day and 100-day moving averages (blue and green) are trending down and are currently overhead, adding pressure and reinforcing the short-term bearish structure. A recovery above the 50-day moving average would be an early sign of strength, but Ethereum needs to regain the $3,500 zone to regain bullish control.
Related books
Volume has spiked dramatically, often indicating capitulation behavior near the cycle’s pivot point. The wick around $3,150 suggests that buyers have aggressively stepped in at the lows, consistent with the accumulation dynamics observed among sophisticated traders. If ETH sustains above the 200-day moving average and builds a foundation here, a relief rally could begin. However, liquidity pockets remain thin below current levels, so a sustained move below $3,150 risks further decline towards $2,900.
Featured image from ChatGPT, chart from TradingView.com
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
