Iconic Bitcoin Trader Increases Ethereum Investment Despite Over $70 Million in Losses

In an environment marked by fear and uncertainty, Ethereum is experiencing renewed selling pressure. Market analysts are increasingly forecasting a prolonged bear market extending into 2026, citing Ethereum's struggle to surpass significant structural levels and the lack of strong momentum. While bulls strive to defend the crucial $2,800 mark that underpins short-term confidence, trading activity remains hesitant, reflecting a cautious market sentiment. Amid this uncertainty, on-chain data indicates a significant divergence between price trends and the actions of seasoned market players. Notably, a well-known Bitcoin trader, previously recognized for shorting during the market downturn on October 10, has significantly raised his Ethereum holdings, adding 12,406 ETH to his long positions. This move indicates confidence at current price levels, even as retail sentiment wanes and discussions of potential further declines circulate. The strategic accumulation by experienced investors suggests that Ethereum may be approaching a critical juncture, raising questions about whether this marks preemptive positioning ahead of a potential recovery or a risky wager amid a declining market. Despite the ongoing market challenges, this trader maintains substantial and confident stakes across various assets, holding approximately 203,341 ETH valued at around $577.5 million, alongside 1,000 BTC worth about $87 million and 250,000 SOL valued near $30.7 million. Such concentrated positions reflect a willingness to withstand significant market volatility rather than retreat from risk in an increasingly uncertain landscape. However, this confidence has not been without consequence, as the trader's portfolio has waned over $70 million from its peak, highlighting how market dynamics can swiftly change. While many are adopting a defensive stance, this substantial exposure signals a belief in the potential for upside even at current levels. Ethereum's technical landscape shows a decline in momentum following rejection near the $4,800–$5,000 range, now trading just below the 50-week moving average. The $2,800 level is critical; a stable hold could indicate a corrective pullback within a broader range, but closing below it may lead to significant losses targeting the $2,400–$2,500 area, aligning with the 200-week moving average. The evolving chart depicts a market wrestling between long-term support and short-term bearish sentiment, underscoring the need for Ethereum to reclaim the 50-week moving average to rebuild confidence in its trend trajectory.