Bitcoin Veteran Doubles Down on Ethereum Investment Despite Over $70 Million in Losses

Ethereum is currently facing renewed selling pressure as the overall market grapples with fear, uncertainty, and increasing bearish expectations. After a few weeks of struggles, numerous analysts are now predicting a lengthy bear market that could extend into 2026. They argue that Ethereum is trading below essential structural levels and lacks significant momentum.

Key Takeaways

Market Overview: Ethereum faces increased selling pressure amid fears of a prolonged bear market extending into 2026.
Expert Activity: A notable Bitcoin veteran has increased his Ethereum holdings, adding confidence despite bearish market sentiment.
Current Holdings: The trader holds significant assets across various cryptocurrencies, showcasing a willingness to endure volatility.
Market Conditions: Ethereum is currently navigating between critical support levels, with the $2,800 mark being particularly significant for future price movements.
Outlook: Maintaining key support is crucial for reversing bearish momentum and setting the stage for potential recovery.

Market bulls are striving to defend the crucial $2,800 mark, which is vital for maintaining short-term confidence, but price movements display a sense of hesitation rather than assuredness. Volatility is high, and market sentiment leans more towards caution than optimism.

In this delicate environment, on-chain data shows a notable difference between market trends and the behaviors of experienced investors. Data from Hyperdash indicates that a well-known Bitcoin veteran, recognized for shorting the market during the crash on October 10, has once again boosted his Ethereum positions.

This trader, who is followed closely for his timely and confident investments, recently increased his long positions by adding 12,406 ETH, indicating his confidence at the current price levels despite the existing bearish sentiment.

While retail sentiment weakens and analysts contemplate deeper declines, the strategic buying by seasoned investors suggests that Ethereum might be nearing a pivotal moment. Whether this indicates early positioning for an upcoming recovery or a risky gamble in a declining market remains to be seen.

High-Confidence Bet Amid Market Pressure

According to Lookonchain, the Bitcoin veteran continues to maintain substantial, high-conviction positions across various assets, despite market weakness. Recent data reveals his current holdings include 203,341 ETH valued at around $577.5 million, 1,000 BTC worth approximately $87 million, and 250,000 SOL valued close to $30.7 million. This concentration showcases a determination to endure significant volatility without reducing risk in an increasingly uncertain market.

Bitcoin Veteran Crypto Positions | Source: Hyperdash

However, this conviction has resulted in substantial drawdowns. The wallet is currently down by over $70 million from its peak value. Previously, unrealized profits were over $120 million, but recent price drops have reduced those gains to below $30 million. This fluctuation underscores how swiftly market conditions can change, even for experienced traders known for their strategic entries.

From a broader viewpoint, this trader's positioning stands in stark contrast to current market sentiment. While many participants are adopting a defensive stance and analysts are considering the potential for a prolonged bear market, this wallet remains heavily invested, suggesting a belief that current levels might still present a favorable opportunity. At the same time, the loss serves as a reminder that large positions and strong conviction do not eliminate risks in a fundamentally weak market.

Ethereum's Structural Support Under Increasing Strain

Ethereum’s weekly chart reveals a distinct lack of momentum following a rejection near the $4,800-$5,000 range, leading to a sharp decline towards the $2,800-$2,900 zone. At present, the price is trading below the 50-week moving average and is close to the 100-week MA, a historically significant turning point for medium-term trend direction. The inability to maintain levels above the short-term averages indicates that sellers have regained control.

ETH Consolidates Around Critical Demand | Source: ETHUSDT chart on TradingView

From a trend analysis, ETH remains above the upward trending 200-week moving average, which is crucial for defining the long-term bullish outlook. However, the growing gap between the faster and slower averages is beginning to narrow, signaling a period of transition rather than a continuation of the trend. Recent weeks have seen an increase in volume during downturns, indicating that the current price drops are likely due to active selling rather than passive market adjustments.

The $2,800 mark has now become a crucial demand area. Maintaining above this level would imply that the current correction is a controlled pullback within a larger range. Conversely, closing below this mark on a weekly basis could open ETH to a deeper decline toward the $2,400-$2,500 range, where the 200-week MA and previous consolidation levels converge.

In summary, the chart illustrates a market caught between strong long-term support and immediate bearish momentum. Ethereum must decisively reclaim the 50-week moving average to mitigate downside risks and restore trust in the potential for trend continuation.