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

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

The decline began when "10·11 insider whale" Garrett's 200,000 ETH perpetual long positions were liquidated over the weekend, causing the price to approach the liquidation line of Trend Research's leveraged positions on Aave. Currently, Trend Research has repaid hundreds of millions in positions, while Garrett has additionally sold approximately $300 million worth of ETH in spot. Trend Research's liquidation price has dropped to around $1,600, which is about 24% away from the current price. Once Ethereum experiences a rebound, this vicious cycle will end. The market should realize this soon, and strong technical support indicates that now is the time for Ethereum and the entire cryptocurrency market to hit the bottom. We hold long positions in Ethereum directly.