As a seasoned crypto investor with memories of Ether trading at just $3.46 back in 2016, I can’t help but feel a mix of awe and envy towards the whale who cashed out their 11,005 ETH at that price. If only I had known then what I know now! But alas, I was still learning the ropes, trying to figure out which end of the computer mouse clicked “buy” instead of “sell”.
Over the past day, Ether has surged by over 9%, hitting a 13-week peak of $2,880 on November 7th.
Over time, a significant Ethereum investor, holding over 11,000 Ether since 2016, seemed to take advantage of substantial profits by selling off their assets.
Whale bought 11,000 ETH at $3.46
In February of 2016, the value of Ether ranged from approximately $2.10 to $6.60 per token. At that time, a specific address transferred 11,005 Ether onto the cryptocurrency exchange ShapeShift, as recorded by Lookonchain. The on-chain smart money tracker indicated that these tokens were purchased at an average price of $3.46 each, totaling around $38,000.
After a long period of approximately eight years, a whale chose to sell their tokens, cashing out on substantial profits. On November 7th, this trader transferred 11,005 Ether when the price stood at $2,777, potentially earning a profit of $30.5 million. This is more than 800 times the initial investment made.
Significantly, if they had sold their Ethereum holdings during the peak of the 2021 crypto boom, when Ether’s value peaked at a record high of $4,800, they would have pocketed over $52.8 million.
In a similar scenario, the value of these holdings would have been approximately $44 million if they were sold in May, when ETH reached its peak price of $4,000.
ETH balance on exchanges spikes
Institutional and whale sales tend to correspond with an influx of exchange transactions. Similarly, in this case, the amount of Ethereum stored on exchanges has increased lately. On October 31, it was approximately 18.8 million ETH, but as of November 7, it has risen to 19.2 million ETH.
The increase in Ether’s price is most striking from November 5th to November 7th, as it surpassed $2,800, potentially suggesting that some investors were taking profits following the recent market surge.
Although it may seem that Ethereum is showing bearish signs, looking at the long-term balance held on exchanges presents a contrasting view.
In simpler terms, the amount of Ether (ETH) stored in exchanges decreased by 7% throughout 2024 and is now close to its lowest level in eight years. This trend follows a larger pattern that has been ongoing since the peak of 35.5 million ETH stored on exchanges back in June 2020, with Ethereum exchange reserves consistently dropping since then.
Is Ether price poised to break to $4,000?
Even with evidence of profit-taking and an increase in foreign currency reserves, the optimism caused by Trump’s election and the shift to positive flows for a spot Ethereum ETF indicate that Ether might be experiencing a bullish surge.
According to crypto expert CryptoJack, posted on the 7th of November, the cost of Ethereum appears ready to surpass the upward sloping structure known as a “rising wedge,” indicating potential price increase.
He shared the chart below showing ETH price seeking to break out from a rising wedge chart pattern that has been in play since September. A decisive close above the wedge’s upper boundary would see the price breakout toward the $4,000 mark, CryptoJack said.
“Once it does, nothing is stopping $ETH from reaching $4k!”
Analyst Moon Whales noted a comparable pattern, suggesting that for Ethereum (ETH) to continue its upward trend and possibly challenge higher resistance levels, it requires substantial trading volume to validate a successful breakout leading to potential further gains.
Currently, the eight-hour funding rate for ETH futures has soared to 0.022%, which is its highest level since May, according to CoinGlass data. This indicates that long positions could potentially be at a higher risk of being liquidated if there’s a price drop.
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2024-11-07 20:30