A crypto whale has made a $5 million gain despite Ethereum’s sluggish price movement over the past 24 hours. A line-up of transactions has been in the works for over a year, leading to the trader’s current profit. Here’s how it was executed.
The Strategic Move
The whale deposited 8,651 ETH, worth $21.47 million, into the crypto exchange Coinbase. This deposit follows a withdrawal of 7,697 ETH valued at $14.3 million from the same platform between July 14 and November 6, 2023, at an average price of $1,859 per ETH. The recent deposit has resulted in a nearly $5 million gain, demonstrating how informed decisions can lead to substantial profits even during market corrections.
A whale deposited 8,651 $ETH($21.47M) into #Coinbase in the past 6 hours, making a profit of ~$5M!
The whale withdrew 7,697 $ETH($14.3M) from #Coinbase at $1,859 between Jul 14 and Nov 6, 2023.
His profit on $ETH exceeded $16M at the peak!https://t.co/v4fbT6mTY8 pic.twitter.com/7sgJ5dVMP3
— Lookonchain (@lookonchain) August 30, 2024
In contrast, not all whale transactions have been profitable. On August 27, another whale sold 5,088 ETH, valued at $13.58 million, resulting in a loss of $3.66 million. This whale had withdrawn the same amount of ETH from Binance between March 28 and April 3, 2023, when the price was $3,389 per ETH. The recent price drop has led to this significant loss.
Similarly, on August 26, a trader deposited 8,825 ETH, worth $24 million, into Binance with plans to sell. Unfortunately, this whale lost $3.96 million after buying the ETH for $27.96 million between July 27 and August 3, 2023, at an average price of $3,169 per ETH before the market downturn.
What is ETH’s Next Price Move?
Despite these losses and the ongoing market correction, there is growing optimism that this downturn might set the stage for a substantial price increase. Recent on-chain data indicates a worsening Ethereum supply shortage with rising staking rates and diminishing exchange reserves.
These two charts simply cannot be IGNORED! 🚨
🔹The #ETHEREUM SUPPLY CRISIS is getting more SERIOUS by the day.
🔹With staking rates soaring and exchange reserves plummeting, as soon as sellers are exhausted and demand increases, #ETH will fly!📈 pic.twitter.com/Fh51nag8Oq
— Leon Waidmann | Onchain Insights🔍 (@LeonWaidmann) August 29, 2024
As more ETH gets locked in staking and taken off the market, the token supply available on crypto exchanges is decreasing. The shrinking supply and the potential for sellers to exhaust their positions could lead to a significant price rally. With rising demand for ETH and a decreasing supply, prices are anticipated to surge.
Cynthia Ezirim | September 14, 2024
Mishael Nwani | September 14, 2024
