Whale abandons PEPE and invests in ETH: strategy shifts from a loss of 310,000 to a floating profit of 330,000

A former PEPE largest long position holder is rewriting their trading story. According to the latest news, this whale (address starting with 0x7271) closed their PEPE long position and incurred a loss of $314,500. They then shifted to a 4x leveraged long on 5618.97 ETH, which currently has an unrealized profit of $330,000. This seemingly simple position switch actually reflects deep changes in market sentiment and capital flow.

Whale’s Strategy Shift

Comparison between loss realization and new position establishment

This whale’s trading trajectory is worth noting:

From the data, this whale’s loss on PEPE reached $314,500, indicating a significant investment in this meme coin. But more notably, they quickly redirected funds into ETH with a 4x aggressive leverage. This is not just a stop-loss but an active strategic adjustment.

Why choose ETH over other assets

According to relevant information, ETH’s current fundamentals are relatively stable. The latest data shows ETH at $3,158.24, up 2.13% in 24 hours, with a market cap of $38.118 billion, accounting for 12.13% of the entire crypto market. The whale’s average entry price was $3,097.29, meaning they entered at a relatively low point. With about a 2% price increase, they have already realized an unrealized profit of $330,000.

What does this choice reveal? As a mainstream asset, ETH has ample liquidity and relatively manageable risk, making it more suitable for large positions. In contrast, PEPE, despite experiencing a strong rebound in early 2026 (with reports showing a weekly increase of over 64%), has higher volatility and risk.

Market Signal Interpretation

Capital transfer from Meme coins to mainstream assets

According to relevant reports, the Meme coin sector experienced explosive growth in early 2026 — total market cap surged from $35 billion at the end of last year to $47.7 billion, an increase of nearly $13 billion within a week. This timing coincides with the whale closing their PEPE position.

Their move may reflect a key market turning point: during the peak of Meme coin sentiment, savvy large traders took profits and shifted into more stable mainstream assets. This is not panic but a risk management move.

Implications of leverage strategy

Going long ETH with 4x leverage is a relatively aggressive choice. It indicates that this whale is confident in ETH’s short-term trend. Considering the changing expectations of Federal Reserve rate cuts (reports suggest the Fed will hold steady in January, with the first cut delayed until June), ETH as a risk asset may face improved liquidity conditions.

Market Insights

This trend could imply several directions:

• Capital flow signal: Large traders shifting from high-risk Meme coins to mainstream assets may signal a transition from purely sentiment-driven to fundamentals-driven markets.
• Price support: The establishment of about $17.75 million in ETH longs could support ETH’s recent upward movement.
• Risk management: Even with leverage, choosing relatively stable assets shows cautious risk control by large traders.

Summary

This former PEPE largest long position holder’s strategic shift is a micro but meaningful market signal. Moving from a $314,500 loss on PEPE to an unrealized $330,000 profit on ETH is not just a position transfer but a rethinking of market risk appetite and asset allocation. Choosing to take profits during Meme coin sentiment peaks, shifting into mainstream assets, and leveraging to amplify gains — this trading style warrants attention from other traders. In the coming weeks, the performance of this position will serve as an important window into large traders’ market expectations.