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

Scimitar Capital co-founder zlex posted on platform X that in the past week, two ETH whales holding substantial 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 the last cycle's historical high.

The decline began when "10·11 insider whale" Garrett's 200,000 ETH perpetual long position was forcibly liquidated over the weekend, bringing the price close to the liquidation line of Trend Research's leveraged position 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 rebounds, this vicious cycle will come to an end. The market should realize this soon, and strong technical support makes this the right time for Ethereum and the entire cryptocurrency market to bottom out. We hold a direct long position in Ethereum.