An ethereum whale caught the attention of the crypto community after a massive deposit on crypto exchange Binance. While the value of the deposit itself is notable, the most interesting part of this whole ordeal is the story of the whale and how selling it now could result in a huge loss.
ethereum Whale Withdrawal of $451 Million
On-chain tracker Lookonchain first noticed the ethereum whale and posted about its activities on November 2. The tracker revealed the interesting history of the whale, including the fact that the whale had withdrawn 123,000 eth worth $451 million at that time in the bull market.
When this initial transaction took place in 2022, ethereum price was still trending above $3,600. However, with the market crash over the past year, whale holdings had decreased significantly in terms of dollar value.
After the $eth price increased, a whale deposited 10K $eth($18.5 million) #Binance lost again 1 hour ago.
The whale withdrew 123K $eth ($451 million) of exchanges at an average price of $3,672 and deposited 83K $eth ($186 million) to trades at $2,246, resulting in a loss of ~$118 million. pic.twitter.com/C8xtx4hs4d
— Lookonchain (@lookonchain) November 2, 2023
Fast forward to November 2023 and ethereum price began to recover, eventually surpassing the $2,000 resistance. The price is still a long way from the $3,672 that is supposed to be the cost price of the tokens. However, the whale seems to want to get out of this huge position.
Lookonchain reported that the whale had been depositing eth on the Binance exchange to the tune of 83,000 eth. On November 2, another transaction of 10,000 eth was recorded with Binance as the destination. Then on November 10, the whale deposited another 30,000 eth on the Binance crypto exchange once again.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/Ethereum-Whale-Deposit-Could-Cause-180-Million-Loss-How" alt="Tradingview.com eth Price Chart (ethereum Whale)” width=”2650″ height=”1742″/>
eth price resting above $2,000 | Source: ETHUSD on Tradingview.com
eth whale set to lose $180 million
The most interesting part about the transactions that have been made so far is that every deposit the ethereum whale has made has been a loss. So if the whale actually deposits these eth to sell, then it would be selling almost 50% below its cost price.
As Lookonchain reveals, the whale has now deposited all the eth it previously held on the Binance exchange. And based on the current price of eth, selling now would net the investor a whopping $180 million in losses.
After the price of $eth increased, this whale deposited the 30,001 $eth($63.3 million) in #Binance At the moment.
This whale is expected to lose a total of 183 million dollars!https://t.co/zZ7z4VImZb pic.twitter.com/gsx7PMnTs7
— Lookonchain (@lookonchain) November 10, 2023
Since the price of eth has been trading below $2,000 for a long time, it is possible that the whale is looking to exit at what they might consider a good price in case the price of ethereum drops again. However, given that expectations of a bull run are only a year away, the question arises as to whether the sell-off is premature.
Currently, eth price is trading at $2,105, with 10% gains in the last day.
Featured image from Nairametrics, chart from Tradingview.com
