In a move that has triggered attention in the cryptocurrency community, an Ethereum whale recently offloaded all 10,701 ETH, equivalent to approximately $33 million, on popular exchange Binance.
On-chain analytics firm Lookonchain reports a crypto whale who sold all their 10,701 ETH stash worth $33 million on Binance to repay a debt in recent hours. The whale went long on ETH by depositing ETH on the compound protocol and borrowing USDT to buy more ETH.
This whale sold all 10,701 $ETH($33M) on #Binance to repay debt 2 hours ago, losing more than $4M again!
He went long $ETH by depositing $ETH on #Compound and borrowing $USDT to buy more $ETH.
This is his second time losing money by going long $ETH.
Last time he lost ~$500K. pic.twitter.com/rVM3xB3GmR
— Lookonchain (@lookonchain) April 16, 2024
The whale’s decision to liquidate such a large amount of Ethereum in a single transaction has drawn attention due to its timing amid ongoing market volatility and uncertainty.
Ethereum, the second-largest cryptocurrency by market capitalization, has experienced significant price fluctuations in recent weeks, with its value oscillating between $2,850 and $3,729 since the start of April.
At the time of writing, ETH was down 4.92% in the last 24 hours to $3,076, extending its loss into the second day from April 15 highs of $3,281.
The sale of the 10,701 ETH stash on Binance was executed as Ethereum’s price experienced a downturn, which is often a trigger for large holders to liquidate their positions in an attempt to minimize losses, repay debt or free up capital for other investments. in the case of this particular whale, it was to repay debt.
The timing of the sale, however, resulted in the whale realizing a $4 million loss, a significant sum even for a large-scale investor.
What makes this sell-off particularly noteworthy is that it marks the second loss-making move by the same Ethereum whale.
According to Lookonchain, the whale had previously incurred a loss of approximately $500,000 as a result of selling their ETH holdings at a lower price than when they acquired them. This raises questions about the whale’s trading strategy and their ability to accurately time the market.
According to Santiment, as crypto prices have been on the decline, Ethereum is seeing the fastest rise in its discussion rate. The new ETF approval in Hong Kong has sparked more interest in the second-largest cryptocurrency, even though shorts are rising rapidly.
