ETH Whale Makes $40 Million on ETH Surges
An influential Ethereum whale recently took advantage of market conditions by cashing out 15,000 ETH, reaping $40 million in profits as Ethereum’s price crossed the $2,600 mark. This action reflects a consistent strategy by the whale to secure profits in anticipation of potential price corrections.
Recent data from SpotonChain, a blockchain analytics platform, reveals that this ETH whale has been strategically moving its assets to centralized exchanges ahead of significant price dips. This recent move by the whale closely followed a transaction made by Ethereum co-founder Vitalik Buterin, who shifted 400 ETH to the crypto mixer Railgun.
Over the past weeks, the whale has successfully transferred a total of 25,000 ETH worth $74 million to the crypto exchange Kraken in two separate transactions. The latest transfer involved 15,000 ETH valued at $39.7 million, at an average price of $2,645. Subsequently, Ethereum’s price saw a 2.5% decline, now trading at $2,591 with a market cap of $311 billion.
Even after these profit-taking actions, the whale still holds 41,639 ETH worth $107 million, resulting in an estimated profit of $131 million, equivalent to an 86% increase over the initial purchase price.
Analysis indicates that the ETH price faces downward pressure due to the emergence of death cross patterns in technical charts and consistent rejections at the $2,600 level. Noted trader Peter Brandt emphasizes the importance of Ethereum breaking past the $3,050 mark to shift the market sentiment in its favor.
Furthermore, a decrease in Ethereum gas fees to a 5-year low has led to lower ETH burn rates, potentially increasing the supply of ETH in circulation, which could have a negative impact on price action. Additionally, data from Farside Investors shows ongoing outflows from spot Ethereum ETFs for the fourth consecutive trading session.
In summary, the recent profit-booking moves by the giant Ethereum whale demonstrate a cautious approach amidst the current market instability. The trends in ETH price, gas fees, and ETF movements paint a complex picture for Ethereum, underlining the need for careful decision-making by both investors and traders.
