Why This Crypto Whale Sold $8.78 Million Worth of Ethereum (ETH)

9 months ago 6

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A crypto whale known for its shrewd trading strategies offloaded a staggering $8.78 million worth of Ethereum (ETH), according to data from the on-chain analytics platform LookOnChain.

The trader sold 3,360 ETH at an average price of $2,615, earning about $1.3 million in profit. This move follows a similar strategy where the same entity sold 367 Wrapped Bitcoin (WBTC) valued at $17.35 million at $47,288 each two days prior, securing a profit of around $1.35 million.

Ethereum Whales’ On-Chain Behavior

The transactions were executed through a trio of wallets, identified by their addresses as 0xAc4c, 0x36c2, and 0x8B20. This strategy indeed showcases the complexity and planning behind these large-scale trades. The timing of the Ethereum sale coincided with a near 6% increase in its price, which surged to $2,658 today.

This uptick in ETH’s market value is attributed to recent developments in the financial sector. Franklin Templeton, a global investment giant, filed with the US Securities and Exchange Commission (SEC) for a spot Ethereum ETF. This move added to the rising interest in crypto-based financial products from major asset management firms like BlackRock, Grayscale, and VanEck.

The crypto whale’s sale of a large amount of Ethereum seems strategic. It aimed to seize the price surge and secure profits before any market drop.

Amid these large-scale sell-offs, other crypto whales are taking a different approach. LookOnChain reported a significant Ethereum accumulation by other large entities.

Notably, a crypto whale with the address 0x7a95 withdrew 9,959 ETH, worth $24.67 million, from Binance just before the recent price surge. Another notable investor, operating under the address 0xdde0, has been actively accumulating ETH and leveraging DeFi protocols like Spark to go long on Ethereum.

This whale has moved an astounding 39,900 ETH, worth $99.5 million, from various crypto exchanges, including Binance, Bybit, OKX, and Bitfinex, since February 1, at an average purchase price of $2,492.

Rekt Capital, a pseudonymous crypto analyst, echoed the sentiments of bullish traders. He suggested Ethereum might test a major resistance near $2,791. This hints at more possible gains for the second-largest cryptocurrency by market cap.

Moreover, other cryptocurrency traders anticipate a price rise of up to $10,000 for Ethereum.

“The only home I know for ETH is above $10,000,” a pseudonymous crypto analyst, Wolf said.