ZEC Whale Short Seller Takes Profit on MON Short, Gains Over $680,000

A major ZEC short seller has partially closed its MON short position to secure profits. The whale, identified as the largest ZEC short seller, took in nearly $1.47 million in profits from 44.75 million MON shorts. This action reduced the total MON short value to $4.41 million.

The whale's actions reflect strategic position adjustments. The average entry price of the position was $0.03, while the liquidation price reached $0.243, indicating a significant gain. The move brought a realized profit of $621,200, or 42.21%.

The move highlights broader trends in crypto shorting behavior. The address continues to hold large ETH and MON short positions, suggesting a continued bearish bias in certain markets. Position trading strategies have helped it recover from a prior $21 million ZEC loss.

Why Did This Happen?

The whale's profit-taking suggests a response to recent market conditions. The MON price rally and favorable liquidation levels provided an opportunity to reduce risk and lock in gains. This aligns with broader market activity, where traders are adjusting positions in anticipation of macroeconomic developments.

The position adjustments come amid broader shifts in the crypto market. Ethereum, for example, has seen strong ETF inflows, with BlackRock's Ethereum ETF reporting a $149.2 million inflow on Jan 16, 2026. These flows signal institutional confidence in Ethereum's potential.

How Did Markets React?

Ethereum's price has benefited from ETF buying and record on-chain activity. ETH traded at $3,310 as of January 19, 2026, up 11% year-to-date. Network activity hit 28-month highs, signaling increased adoption.

The renewed ETF buying has outpaced new supply. Spot Ethereum ETFs recorded $474.6 million in inflows over four days, the highest since December 2025. This has boosted liquidity and attracted institutional capital, especially from players like Bitmine.

What Are Analysts Watching Next?

Traders are watching Ethereum's price action for confirmation of bullish momentum. Key support levels include $3,050-3,170, and a weekly close above these levels could signal a stronger upward trend. The 50-week exponential moving average is within this range.

Analysts are also observing whether the ZEC short seller will continue to adjust its positions. The whale's prior losses and subsequent recovery suggest a disciplined approach to risk management. Further profit-taking or position closures could influence market sentiment in ZEC and related assets.

The broader crypto market is also on alert for regulatory and macroeconomic developments. With the Federal Reserve hesitant to implement rate cuts, traders are closely watching inflation data and other economic indicators that could affect risk appetite. This uncertainty has led to volatile price swings in many assets.

Ethereum ETF inflows remain a focal point for investors. Grayscale's ETHE reported a $3.9 million inflow on Jan 13, 2026, indicating sustained institutional interest. This trend could continue if Ethereum's fundamentals remain strong and regulatory clarity improves.

Investors are also monitoring blue-chip stocks like Coca-Cola (KO) and CME Group (CME), which will report earnings in the coming weeks. These reports could influence broader market sentiment and impact crypto-related investments.