The Buddy Reduces HYPE and ETH Long Positions, With Weekly Unrealized Gains Exceeding $2.5 Million

High-profile crypto trader Brother Ma, known as 'The Buddy,' continues to adjust his long positions in multiple assets. Recent data indicates that he has partially taken profits on his HYPE and ETH positions, resulting in cumulative unrealized gains of over $2.538 million in the past week. The latest activity is part of a broader trend of strategic portfolio rebalancing amid strong market conditions.

'Brother Ma' reduced his HYPE and ETH long positions, which remain among the largest in his portfolio. His ETH position still holds a value of $34.87 million, with an unrealized profit of $862,000 as of January 18. These figures reflect ongoing confidence in Ethereum's performance, despite some profit-taking.

In the same period, 'The Buddy' added to his ZEC long position, increasing it by approximately $246,000. This addition lowered his average cost basis for Zcash, though it currently shows an unrealized loss of $48,100. This move suggests a mixed approach to risk and reward within his portfolio.

Why Did This Happen?

The reduction in HYPE and ETH longs likely reflects a broader strategy to lock in gains in a market showing strong momentum. Ethereum has experienced significant inflows into spot ETFs, with over $474 million in four days during the first week of January. This institutional demand may have influenced 'The Buddy's' decision to take partial profits.

The trader's continued holding in ETH, despite some profit-taking, aligns with broader market sentiment. Ethereum has seen record network activity, including a 53% rise in active addresses over 30 days, reaching a 28-month high. These metrics suggest sustained demand and a strong use-case environment for Ethereum.

What Are Analysts Watching Next?

Analysts are tracking the potential for ETH to rise further if key support levels hold. Institutional buying has pushed Ethereum's price to over $3,300, with expectations of a rally toward $4,500. The weekly close above the 50-week exponential moving average is seen as a critical technical confirmation for a bullish trend.

Meanwhile, the impact of staking continues to be a key factor. Nearly 30% of ETH is now locked in staking contracts, reducing circulating supply and potentially supporting price during periods of high demand. This dynamic has been a point of discussion among traders and analysts as a structural support for Ethereum's valuation.

The broader institutional interest in Ethereum remains strong. BlackRock's Ethereum ETF reported inflows of $149.2 million on January 16, while Grayscale's ETHE product recorded $3.9 million in inflows on January 13. These figures underscore the growing acceptance of Ethereum as an institutional-grade asset.

For traders monitoring the market, 'The Buddy's' moves provide insight into how large holders are responding to favorable conditions. The cumulative unrealized gains from HYPE and ETH positions suggest a successful short-term strategy, while the ongoing ETH holding indicates a belief in longer-term potential. Investors should consider both technical and fundamental factors when evaluating Ethereum's trajectory.

The combination of ETF inflows, staking dynamics, and active institutional participation is likely to shape Ethereum's near-term performance. As the market continues to evolve, strategic adjustments by major holders like 'The Buddy' will remain a key indicator for investors and traders alike.