Just cleared the position and now bullish on Q1, why does James Wynn still have a positive outlook on Ethereum again?

Trader James Wynn, who was once close to bankruptcy, announced on January 17th that he is optimistic about Ethereum again, just two days after liquidating all PEPE and ETH long positions. He predicts that Q1 will be a bullish period. What is behind this sudden shift? Is Ethereum’s current market performance enough to support such expectations?

The Contrasting Narrative of the Trader

From liquidation to bullish in two days

On January 15th, James Wynn chose to close all positions. According to on-chain data, he liquidated all PEPE and ETH long positions on Hyperliquid. His PEPE longs yielded approximately $110,000 profit, but his ETH longs incurred a loss of $160,000, resulting in a net profit of about $20,000 upon exit. Prior to this liquidation, he experienced 12 consecutive liquidations on January 8th, with his account balance being cut multiple times from a high of $900,000.

Just two days later, he expressed bullish sentiment again on social media. This rapid change reflects the swift shifts in market sentiment and also indicates his confidence in the current rebound.

Market signals behind his perspective

In his latest post, James Wynn mentioned, “The cycle we’ve been waiting for may be unfolding,” and emphasized, “Many are still on the sidelines, many have already scattered.” This statement hints that the market is at a turning point—fear is receding, and new bullish forces are gathering.

He specifically mentioned tokens including ETH, PEPE, DRB, and BYTE, with ETH being the largest market cap and the most representative.

Ethereum’s Actual Performance

Recent Price Increase Data

According to the latest market data, Ethereum has shown relatively strong performance:

ETH is currently priced at $3,317.93, with a market cap of $40.046 billion, ranking second among cryptocurrencies, accounting for 12.38% of the market.

Positive On-Chain Activity Signals

More noteworthy is the staking activity on the chain. According to recent reports, the number of ETH queued to join the Ethereum PoS network has surpassed 2.55 million ETH, roughly equivalent to $8.59 billion. This figure reflects institutional and large investors’ recognition of Ethereum’s long-term value, as they are willing to lock assets to earn staking rewards.

Q1 Market Outlook

Rising Market Risk Appetite

Market consensus generally believes that risk appetite is increasing, and Bitcoin and Ethereum still have room for further upside. This aligns with James Wynn’s forecast. When risk appetite rises, it usually means investors shift from defensive to aggressive strategies, which benefits risk assets like Ethereum.

Risks to Watch

However, it should be noted that James Wynn’s trading history is highly volatile. He set a record of +3331% return over 7 days on January 6th but subsequently faced consecutive liquidations. This reminds us that high-leverage traders’ views often reflect short-term market sentiment rather than long-term fundamentals.

He previously predicted on January 1st that PEPE’s market cap would surpass $69 billion by 2026, but currently, PEPE’s market cap is only $2.54 billion, which raises questions about the accuracy of such forecasts.

Summary

While James Wynn’s bullish outlook on Ethereum for Q1 is supported by certain market data, his personal trading history limits the reference value of his views. Ethereum has indeed shown relative strength, and on-chain staking data indicates a gathering of long-term bullish momentum. However, for ordinary investors, high-leverage traders’ predictions are more a reflection of market sentiment than a basis for decision-making. The final direction of Q1 will depend on macroeconomic conditions, policy developments, and overall market liquidity, among other factors.