A significant event unfolded in the altcoin market as a prominent Ethereum (ETH) whale, recognized as a “diamond hand” for their long-term holding strategy, sold a sizable portion of their ETH assets. Blockchain analysis platform Lookonchain reported that this whale offloaded 15,000 ETH recently, marking a notable transaction.
What Led to the Whale’s Profit?
In September 2022, during a bear market, the whale acquired 96,639 ETH at $1,567 per coin, withdrawing these assets from Coinbase. Known for their steadfast investment approach, the whale held onto this substantial amount until the market conditions shifted favorably. As the crypto market experienced a bull run starting in March 2024, ETH prices surged, prompting the whale to capitalize on their investment.
Bitcoin reaching close to $74,000 and ETH surpassing $4,000 marked a profitable period for the whale. According to Lookonchain, the investor sold 55,000 ETH at $3,199 each, totaling $176 million. This strategic move resulted in a gross profit of around $132 million. Post-sale, the whale’s holdings now stand at 41,639 ETH, valued at approximately $107 million.
How Is Ethereum Performing Now?
Ethereum’s price has been volatile, recently recovering from the $2,500 support level but struggling to breach the $2,700 mark. Currently trading at $2,572, ETH has dropped 3.45% in the past 24 hours. If the downward trend persists, ETH could fall below $2,500, potentially reaching $2,309, where bulls may attempt to stabilize the price again.
Conversely, if buyers succeed in pushing ETH above $2,690, the price might climb to $2,850, encountering selling pressure. A breakthrough above the 50 and 200-day simple moving averages, at $3,000 and $3,246 respectively, could signal the onset of a new uptrend.
Investment Insights
– Short-term market fluctuations can present substantial profit opportunities.
– Monitoring whale activities can provide insights into market movements.
– Long-term holding strategies can be advantageous during extended bullish periods.
– Key support and resistance levels are critical for trading decisions.
In summary, the Ethereum whale’s strategic sell-off has not only realized significant profit but also sparked market discussions on ETH’s trajectory. Investors and traders will closely watch these developments to gauge future market trends.