Ethereum Trader Experiences Major Losses Before Buying Back at Higher Prices

Ethereum’s price increased by 6% recently with notable trading activity. A trader lost $3.6 million selling ETH low, then repurchased at a higher price. Significant movements included a whale withdrawing 5,531 ETH from Binance and another wallet buying large quantities. Currently, ETH is trading at $1,792, reflecting a 13% weekly surge.

Ethereum’s trading dynamics have witnessed notable shifts recently, with prices rising nearly 6% in the past 24 hours, coupled with an 18% increase in trading volume, as reported by CoinMarketCap. The resurgence of trading activity has been particularly highlighted by a trader exhibiting significant speculative behaviour.

This trader initially purchased 1,805 ETH about six months ago at $3,559 per coin, totalling approximately $6.42 million. However, after a decline in price, they held the coins but eventually sold them two weeks ago at a significant loss of around $3.6 million. Ironically, shortly after their sale, ETH began to ascend in value.

Currently, this trader has re-entered the market, purchasing 1,734 ETH for about $3.11 million at approximately $1,792 per coin. This re-entry has raised concerns as they sold at a lower price and reacquired at a higher price point, leading Lookonchain to characterise this strategy as “buy high, sell low, then buy back even higher.” Such strategies typically entail high risk and potential losses.

Concurrently, significant movement in the market was noted with a “whale” withdrawing 5,531 ETH, valued at around $9.8 million, from Binance within just one hour. Additionally, another wallet has been reported to have purchased 2,568 ETH for 4.61 million USDC at about $1,794 per coin.

Moreover, Lookonchain detected a wallet that borrowed 15,000 ETH (approximately $24.9 million) from Aave, and subsequently withdrew another 35,754 ETH, amounting to $64.13 million, which was sold within three hours, also near the $1,794 mark. Currently, ETH is trading at $1,792, with a 13% increase over the past week and a market capital growth of 5.96%.