In recent days, an interesting on-chain phenomenon has been observed. A whale address labeled as "ZEC maximum short" has been frequently trading, and its actions are quite aggressive.

Let's first see what this whale has been up to recently:

Last night, it took profit on a $3 million ETH short, then immediately kept trading without pause, rolling over positions in the early morning to average down, pushing the average price down to $3,246. Subsequently, it continued to add to short positions in ETH, ZEC, and MON, with total shorts soaring to $163 million. Interestingly, the ZEC short is already showing a floating loss of $4.48 million, yet this whale is still throwing more money in. In contrast, the MON short is showing a floating profit of $2.95 million and is still increasing its position.

What does this reflect?

Honestly, this is not just simple profit-taking. Look at the rhythm—first closing part of the position, then rolling over to lower costs, and then expanding the overall exposure. This is a clear signal that "I believe this decline will continue."

ETH is especially worth analyzing. Despite a floating profit of $14.23 million, the whale not only didn't withdraw but also lowered the average price. The logic is simple: the target hasn't been reached, and there's still plenty of room for a pullback. As for ZEC, since opening the short in October, this whale has been frequently adjusting its positions, clearly betting on a weakening ZEC ecosystem or a decline in market risk appetite.

From a macro perspective, now is a period of tight liquidity at year-end, and large positions can easily trigger market volatility. Recently, a notable phenomenon has been observed—several altcoins, including MON, are being heavily shorted, indicating that capital has diverging views on these high-flying projects. The fact that whales are willing to increase positions while in floating loss usually suggests they have a strong conviction about the future trend.

So, what should ordinary traders do now?

My advice is straightforward: avoid chasing highs in the short term, especially for targets like ZEC and MON that are heavily shorted. If ETH drops below $3,246 (the whale’s average cost), it could trigger a wave of stop-loss selling, which is a level to watch carefully.

Of course, monitoring large on-chain addresses is useful, but don’t blindly follow the shorts. Whales can also be wrong. The key is to combine on-chain behavior, position management, and trend signals to improve your win rate. Markets often bottom out in panic, rise amid doubt, and end in madness. The ongoing shorting by this whale reflects, to some extent, the overall market sentiment, and increased volatility is highly probable.

So, the main points are: stay alert, manage your positions well, avoid reckless trading, and wait for a clear market direction before taking action.