Scimitar Capital Co-founder: Two major ETH whales have closed most of their leveraged positions in the past week. Ethereum and the crypto market have bottomed out, and the vicious cycle is about to end.

ZkProver · 2026-02-05T06:20:16+00:00

Recently, a large ETH whale liquidated most of its leveraged positions, causing its price to drop over 20%, dragging BTC down to its historical support level. The market may soon realize the rebound opportunity, making now a good time to hold ETH long positions.

ZkProver

2026-02-05 06:20:16

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ChainCatcher News, Scimitar Capital co-founder zlex posted on the X platform that over the past week, two ETH whales holding massive assets have closed most of their leveraged positions. This move caused ETH to drop over 20%, dragging BTC down to the support level of the previous cycle’s all-time high.

The decline began when Garrett, known as the “10·11 Insider Whale,” had 200,000 ETH perpetual long positions forcibly liquidated over the weekend, pushing the price close to the liquidation threshold of Trend Research’s leveraged positions on Aave. Currently, Trend Research has repaid hundreds of millions of dollars in positions, while Garrett has sold an additional approximately $300 million worth of ETH spot. Trend Research’s liquidation price has dropped to around $1,600, about 24% below the current price. Once Ethereum rebounds, this vicious cycle will end. The market should realize this soon, and strong technical support makes now the bottoming point for Ethereum and the entire cryptocurrency market. We are directly holding long positions in Ethereum.

ETH-7.68%

BTC-8.37%

AAVE-6.46%

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