Sell Alert? ‘Smart’ Ethereum Whale Dumps $21 Million in ETH
For those involved in the crypto market, observing the behavior of smart whales can be a strategic move. These entities, characterized by their substantial capital and a history of profitable trades, often set trends that can inform or influence market movements.
One such recent activity that has caught the attention of crypto enthusiasts involves a ‘smart’ whale within the Ethereum (ETH) space. This particular trader made a significant move by closing an Ethereum position valued at $21 million, securing a profit of $5.32 million in the process.
This noteworthy transaction was highlighted in a post by Lookonchain on X (formerly known as Twitter), which detailed the whale’s trading activities. The investor originally purchased 7,429 ETH for a total of $16.5 million on January 26. The entire position was then offloaded at an average price of $2,937 per token on February 23.
This isn’t the first occasion on which the investor cashed in on a substantial profit. A previous trade, executed between October 2023 and January 2024, saw the smart whale buying 9,217 ETH at $1,863 and selling them at $2,442 on average. This maneuver resulted in $5.34 million in realized profits.
The period encompassing these transactions witnessed a remarkable surge in Ethereum’s value — an increase of 100% from the price at which the smart whale initially bought in, to when they sold. During this window, Ethereum’s price fluctuated between a low of $1,522.84 and a high of $3,032.36.
Ethereum’s recent performance has led to its Relative Strength Index (RSI) being considered overbought on the daily chart. An overbought RSI often hints at a potential price correction on the horizon, potentially motivating the smart whale’s decision to sell. Meanwhile, the 50-day exponential moving average (EMA), currently sitting around $2,550, could serve as a support level, indicating a possible 13.5% decline from the recent price of $2,957.
The actions of this Ethereum smart whale, resulting in over $10.66 million in profits over four months, clearly demonstrate a strategic and profitable approach to trading within the volatile crypto market. This illustrates how the high-stake moves of smart whales can offer valuable insights for other market participants.
However, it’s important to stress that while tracking the activity of smart whales can offer some guidance, investors should not solely rely on mirroring these transactions. Every trader should invest the time to develop a personalized trading strategy that takes into account their risk tolerance and market knowledge. This approach helps in navigating through the complexities and volatilities inherent in the cryptocurrency markets.
