This Ethereum Whale Trader Lost $13M In 6 Months: Is Their Latest Long A Contrarian Signal?
By Benzinga
Onchain analytics firm Lookonchain identified an Ethereum (CRYPTO: ETH) whale losing $13 million in the past six months as market participants expect the start of an uptrend.
What Happened: The whale trader last purchased 2,117.7 ETH, equivalent to $5.17 million, as Ethereum is up 7% over the past week.
However, this was not the first time the investor had made such a move.
Lookonchain pointed out that the same investor was liquidated for 6,078 ETH ($14.7 million) when the price plummeted on Aug. 5. In the past six months, the investor has lost $13 million by going long on ETH.
In total, the trader has gone long on ETH five times, losing four times, which results in a win rate of only 20%.
Why It Matters: Spot On Chain data revealed that earlier this week, the Ethereum Foundation sold another 300 ETH for 763,092 Dai (CRYPTO: DAI) in only 20 minutes. Since the start of September, the Ethereum Foundation has sold 950 ETH (worth $2.27M) at an average price of $2,392, with sales occurring every 4-7 days.
On the other hand, IntoTheBlock data highlighted that 150,000 ETH was deposited to exchanges in one day (Sep. 19), the highest since January. This implies rising selling pressure as users look to capitalize on recent price movements, secure profits or limit further losses.
However, traders remain bullish on the upcoming Ethereum performance. Crypto trader Javon Marks sees the next move to the upside, similar to the chart pattern of 2023. He expects that it could lead to a “$4,723.5 and a break above those levels brings $8,000+ in play.”
Crypto trader Wolf predicts a strong bullish move based on technical chart patterns.
What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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Image: Shutterstock
