In a recent action that has garnered notice within the cryptocurrency world, an Ethereum whale sold all 10,701 ETH, or around $33 million, on well-known exchange Binance.
According to on-chain analytics company Lookonchain, a cryptocurrency whale recently sold all 10,701 ETH they had stashed on Binance for $33 million in order to pay off debt. By putting ETH on the compound protocol and borrowing USDT to purchase additional ETH, the whale went long on ETH.
The timing of the whale’s choice to sell off such a substantial portion of Ethereum in a single transaction has attracted notice because of the continuous volatility and unpredictability of the market.
https://x.com/lookonchain/status/1780112707158679663
The value of Ethereum, the second-largest cryptocurrency by market capitalization, has fluctuated significantly in recent weeks, ranging from $2,850 to $3,729 since the beginning of April.
As of this writing, ETH has dropped 4.92% on the previous day to $3,076, continuing its decline from its peak of $3,281 on April 15.
The 10,701 ETH stockpile was sold on Binance during a dip in Ethereum’s price, which sometimes prompts significant investors to sell their holdings in an effort to reduce losses, pay off debt, or free up funds for new ventures. In the instance of this specific whale, it was debt repayment.
But due to the timing of the transaction, the whale had to realise a $4 million loss—a substantial amount even for a major investment.
The fact that this sell-off is the Ethereum whale’s second loss-making move makes it very remarkable.
The whale had previously lost almost $500,000 since they had sold their ETH holdings for less than what they had paid for them, according to Lookonchain. This calls into doubt the whales’ trading methodology and their capacity for precise market timing.
Santiment claims that while cryptocurrency prices have been falling, Ethereum’s conversation rate has increased at the quickest rate. Despite the fact that shorts are increasing quickly, the second-largest cryptocurrency has attracted greater attention when Hong Kong approved a new ETF.
