On January 8th, on-chain data revealed an interesting game of strategy — after Ethereum fell below the key support level of $3100, a large holder acted quickly.

This whale first liquidated $64 million worth of Ethereum short positions, taking profits and closing out. However, this does not mean their bearish outlook has changed. Data shows that this player still maintains a 3x leveraged short position, holding 8,377.77 ETH in shorts, totaling approximately $26.14 million, with unrealized gains of $150,000.

This strategy reflects a common risk management logic — taking partial profits while retaining positions to continue participating in the market. In the highly volatile derivatives market, such an approach can lock in some gains while remaining poised for potential downside. Based on the current unrealized profits, it seems this large holder's judgment is still playing out as expected.