Anti-CZ Whale Suffers Major Loss: $61 Million in Profit Annihilated Amid Ethereum and XRP Long Drop

Anti-CZ Whale Suffers Major Loss: $61 Million in Profit Annihilated Amid Ethereum and XRP Long Drop

As Ethereum plunges below significant support levels, overall market sentiment is quickly deteriorating amidst a downturn in major cryptocurrencies. Analysts are raising alarms about a potential new bear market, highlighting that both Bitcoin and leading altcoins have lost crucial technical zones that were pivotal for the overall market structure. Ethereum (ETH) is currently trading at multi-month lows and is facing heavy liquidations, increased sell-side pressure, and dwindling investor confidence.

In a recent report from Lookonchain, an alarming development has emerged: the prominent trader known as the Anti-CZ Whale has witnessed a staggering loss of over $61 million in profits over a span of just 10 days.

Key Insights

Ethereum has dropped below key support levels, signaling a worsening market outlook.
The Anti-CZ Whale has seen a significant decline in profits, losing over $61 million due to market volatility.
The recent downturn predominantly affected Ethereum and XRP positions held by the whale.
A critical support zone for Ethereum stands at $2,680; a breach could lead to further losses.
Current market conditions reflect increased volatility and fear-driven selling rather than strategic profit-taking.

The Collapse of the Anti-CZ Whale's Profits

Lookonchain indicates that the trader known as the Anti-CZ Whale has faced substantial losses during this recent market correction, primarily affecting his Ethereum holdings. Just 10 days ago, this whale had amassed nearly $100 million in profits on the Hyperliquid platform, thanks to aggressive trading strategies during volatile market conditions.

Anti-CZ Whale Ethereum and XRP Positions | Source: Lookonchain

However, the sharp correction in the crypto market turned his significant long positions in ETH and XRP against him. This shift has led to a brutal drawdown, resulting in his total profit plummeting to around $38.4 million, erasing over 60% of his gains in less than two weeks.

This rapid reversal doesn't just reflect one trader’s misfortune; it underscores the considerable pressure on Ethereum. As ETH values continue to decline, investor sentiment deteriorates, leaving even experienced traders struggling to adapt to the intensified volatility. The swift erosion of the whale's profits illustrates how quickly bullish sentiment can shift when essential support levels are compromised.

For Ethereum, maintaining the current support zone is vital. The price action has already imposed significant strain on long positions, short-term investors, and leveraged traders. A decisive loss of this support could lead to increased forced selling, further deepening losses and accelerating the market’s overall decline.

ETH Price Outlook: Navigating a Critical Support Area

Ethereum is approaching a crucial juncture on the weekly chart, retracing sharply towards the $2,680 region, which is now the last meaningful support threshold before a more severe market breakdown. Analysis reveals a strong rejection from the $4,500 zone earlier this quarter, followed by a consistent trend of lower highs and lower lows, confirming a medium-term downtrend.

The 50-week moving average has been decisively breached, and ETH is currently positioned right atop the 100-week moving average, a significant level historically recognized as a vital pivot during major market corrections.

ETH setting fresh lows | Source: ETHUSDT chart on TradingView

The surge in trading volume during this recent price decline indicates a market increasingly driven by fear and forced selling instead of rational profit-taking strategies. This trend aligns with the general market conditions marked by thin liquidity and high volatility among major cryptocurrencies. A clear breach below the $2,650 level could pave the way for a retest of the $2,300 to $2,400 range, which has previously been a strong accumulation zone.

However, the weekly chart also suggests that Ethereum is entering a historically oversold territory, similar to conditions seen in mid-2022 and late-2023, where potential reversals occurred after periods of compression. For now, it is essential for Ethereum to stay above this weekly support level to prevent a deeper price retracement and maintain the structure needed for a possible recovery.

Image credits: Featured image from ChatGPT, chart from TradingView.com