Cryptocurrency trader squanders $2 million within two days as investment skyrockets 60% in a single month.
Crypto Whale Takes a $2 Million Hit on Ethereum Sale
In a surprising turn of events, a major player in the world of cryptocurrency, popularly known as a whale, has suffered a loss of $2 million, despite Ethereum, one of the top-performing assets this month, showing remarkable growth.
The mystery trader dumped 10,543 ETH, worth around $26.1 million, at an average price of $2,476 per coin over a two-day period, according to fresh data from Lookonchain. This massive sale resulted in a substantial loss for the whale.
The details of the transaction reveal that the Ethereum was sold through a series of large swaps, with most of them occurring within an hour. The trader employed 1inch, a decentralized exchange aggregator, and multiple contract interactions to convert wrapped ETH (WETH) into stablecoins like USDC and USDT.
Interestingly, this sale took place during a brief downturn in the overall cryptocurrency market, during which Ethereum also witnessed a temporary setback. Instead of weathering the dip, the whale decided to cash out, even though Ethereum managed to hold above the $2,500 mark.
Meanwhile, another large holder withdrew 6,053 ETH, worth approximately $15.66 million, from cryptocurrency exchange OKX on May 17. This could be a sign of profit-taking after Ethereum's recent surge.
A Closer Look at Ethereum
Ethereum has been one of the top performers in the crypto space lately, gaining roughly 61% over the past month to trade at $2,518 at the time of writing. The asset has shown good consolidation on the daily and weekly charts, with gains of 1.2% and 1.4% respectively.
The market sentiment around Ethereum remains overwhelmingly bullish. The current price is trading above the 50-day and 200-day simple moving averages (SMA), indicating a strong upward trend. However, some caution is advised as the 14-day Relative Strength Index (RSI) stands at 66.51, nearing the overbought threshold.
Recent reports suggest that veteran trader Peter Brandt sees the current momentum around the asset as a stepping stone for a new high. He believes Ethereum is set for a 'moon shot'.
While the reasons for the whale's decision to sell amid a bullish market remain unclear, the recent market fluctuations serve as a reminder of the volatile nature of the cryptocurrency world. It's important for investors to stay informed, diversify their portfolios, and make informed decisions based on market trends and analysis.
- Despite Ethereum's recent growth and bullish market sentiment, a crypto whale incurred a loss of $2 million by selling 10,543 ETH, demonstrating the volatile nature of investing in cryptocurrency.
- Even though Ethereum showed remarkable growth and held above the $2,500 mark, a major player decided to cash out their Ethereum holdings, highlighting the potential risks of trading crypto during market fluctuations.
- Amidst a bullish market, tech-based assets like Ethereum, observed to be one of the top performers in the crypto space, can be appealing for investors, but it's crucial to exercise caution, stay informed, and diversify portfolios for investment decisions based on market analysis.
