The cryptocurrency market faced a keen downturn as Ethereum fell below the $3,100 level while Bitcoin lost its critical $100,000 mark, triggering widespread liquidation and fear-based selling. Panic quickly gripped the market and sentiment plummeted as investors rushed to reduce exposure, price targets disappeared from social media and risky assets saw a cascade of exits. In moments like these, emotions often trump fundamentals – and this week was a stark reminder of that animated.

However, even in periods of acute fear, not all market participants behave the same. Some high-profile players have begun to change their stance, suggesting that panic-driven strategic positioning may already be underway. Among them is the well-known anti-CZ Whale – a trader who gained attention for aggressively selling ASTER immediately following Changpeng Zhao’s public post announcing that he had purchased ASTER. This trade paid off enormously as ASTER rose briefly and then fell sharply, providing this whale with tens of millions in unrealized profits.

Now, in a noticeable change, this trader has moved from a tiny position in Ethereum to a long position, signaling renewed confidence despite the emotional market collapse. When fear reaches its peak, sophisticated players can already prepare for the next phase, asking the question: is this surrender… or opportunity?

Whale turns into ETH as market panic reaches peak

According to Lookonchain, the celebrated anti-CZ Whale has a significant wallet Changegoing from shorting Ethereum to taking a long position worth 32,802 ETH (~$109 million). Currently, the whale maintains a tiny ASTER position of 58.27 million (~$59.7 million), signaling a belief that ASTER weakness may persist despite recent volatility.

In addition, the whale has a tiny position of 1.99 billion kPEPE (~$11.3 million), a bet against speculative memecoin flows in times of uncertainty. Meanwhile, a compact position of 130,566 DOGE (~$21.5K) seems more symbolic than directional and likely serves as a hedge or sentiment indicator rather than a major persuasion play.

The standout move is clearly the length of ETH, which signals that the whale views Ethereum’s drop below $3,100 as oversold rather than structurally bearish. Taking such a stance at a time of peak fear suggests an expectation of recovery once forced liquidations composed down and liquidity stabilizes. While broader sentiment remains volatile, this shift means sophisticated capital can already position itself for an eventual rebound, strengthening ETH’s role as a core asset even in the face of aggressive market stress.

ETH Price Technical Outlook: Testing Key Support as Panic Selling Eases

Ethereum is trying to stabilize after a keen crash below the $3,500 area, and the price is currently reacting around the $3,300 zone. This level aligns closely with the 200-day moving average (red line), making it a critical support area for bulls to defend. The recent candlestick pattern shows high volatility and high selling volume, confirming that the main driving force behind the move is panic-driven liquidations rather than a fundamental trend change.

The aggressive color followed a series of lower highs throughout October, signaling weakening momentum before a breakdown. The 50-day and 100-day moving averages (blue and green) are trending down and are currently on the upside, adding pressure and strengthening the short-term bear structure. A recovery above the 50-day MA would be an early sign of strength, but Ethereum needs to reclaim the $3,500 zone to regain bullish control.

Volume has surged, suggesting capitulating behavior – often near cycle turning points. The wick near $3,150 indicates that buyers have aggressively entered the lows, which is consistent with the accumulation dynamics observed among sophisticated traders. If ETH holds above the 200-day MA and builds a base here, it could start a relief rally. A sustained break below $3,150, however, risks a further decline towards $2,900 as liquidity resources remain slim below current levels.

Featured image from ChatGPT, chart from TradingView.com