Scimitar Capital co-founder: Two major ETH whale have closed out most of their leveraged positions in the past week, indicating that Ethereum and the ...
TL;DR
Two major ETH whales liquidated leveraged positions, causing ETH to drop over 20% and affecting BTC. This triggered a cycle of liquidations, but strong technical support suggests a market bottom is near.
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Odaily Odaily reports that Scimitar Capital co-founder zlex stated on the X platform that two ETH whale holding substantial assets have liquidated most of their leveraged positions over the past week. This move caused ETH to fall by more than 20%, dragging BTC to support levels near its all-time high from the previous cycle. The decline began when Garrett, the "10/11 insider whale," liquidated his 200,000 ETH perpetual long positions over the weekend, causing the price to approach the liquidation line for Trend Research's leveraged positions on Aave. Trend Research has now liquidated hundreds of millions of dollars in positions, while Garrett has sold an additional $300 million worth of ETH spot. Trend Research's liquidation price has fallen to around $1600, about 24% below the current price. This vicious cycle will end once Ethereum rebounds. The market should realize this soon, and strong technical support makes now the perfect time for Ethereum and the entire cryptocurrency market to bottom out. We hold a long position in Ethereum.