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In a move that gained attention in the cryptocurrency community, an Ethereum whale recently offloaded all 10,701 ETH, worth approximately $33 million, on popular exchange Binance.
On-chain analytics company look on chain Report of a crypto whale who sold his entire stash of 10,701 ETH worth $33 million on Binance in recent hours to pay off his debts. The whale deposited ETH in the compound protocol and went long ETH by borrowing USDT to buy more ETH.
The whale’s decision to liquidate such a large amount of Ethereum in a single transaction drew attention due to its timing amid continued market volatility and uncertainty.
Ethereum, the second-largest cryptocurrency by market capitalization, has seen significant price fluctuations in recent weeks, with its value hovering between $2,850 and $3,729 since early April.
At the time of writing, ETH has fallen 4.92% in the past 24 hours to $3,076, extending losses into the second day from its April 15 high of $3,281.
The sale of 10,701 ETH stored on Binance was carried out in response to the drop in Ethereum's price, which is often a sign that large holders are trying to minimize losses, pay off debt, and invest in other investments. This triggers the liquidation of positions in order to allocate funds. In this whale's case, it was to pay off a debt.
But the timing of the sale meant Whale would incur a loss of $4 million, a large sum even for large investors.
What makes this plunge particularly noteworthy is that it marks the second losing move by the same Ethereum whale.
According to Lookonchain, Whale had previously sold his ETH holdings at a lower price than when he acquired them, resulting in a loss of approximately $500,000. This raises questions about Whale's trading strategy and ability to accurately time the market.
according to Santimento, Ethereum's discussion rate is increasing the fastest while crypto prices are on a downward trend. A new ETF approval in Hong Kong is further fueling interest in the second-largest cryptocurrency, even as short selling is rapidly increasing.
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Tomiwavoldo Olajide
