- In a recent market development, Ethereum saw a 4% drop after smart traders sold $41 million worth of ETH.
- This significant sell-off highlighted ongoing bearish sentiment in the cryptocurrency market.
In the volatile world of cryptocurrency, market fluctuations are a constant challenge for traders and investors. On July 8, 2024, the market faced another significant jolt when two savvy traders liquidated a hefty 13,680 Ethereum (ETH) worth $41 million. According to the on-chain analytics firm Spotonchain, this massive sell-off occurred as the market was beginning to show signs of recovery, leading to a sharp 4.5% decline in ETH’s value.
Whale Activity and Market Impact
Spotonchain data revealed that one of these traders transferred all his ETH holdings—totaling 6,440 ETH and valued at $19.5 million—to Binance, the world’s largest cryptocurrency exchange. This transaction happened 21 hours before the price drop. Despite this trader incurring an estimated loss of $2.65 million due to the market downturn, he secured a substantial cumulative profit of $20.6 million from previous Ethereum trades.
As #Ethereum price dropped 7% again (24H), two smart traders went bearish and unloaded 13,680 $ETH (~$41M)!
— Spot On Chain (@spotonchain) July 8, 2024
1. smartestmoney.eth deposited all 6,440 $ETH ($19.5M) to #Binance ~21 hours ago.
• Est. loss from the latest $ETH trade: $2.65M (-7.74%).
• Cumulative profit from… pic.twitter.com/iKbZgmT2uO
The second trader, operating from wallet address 0x742, moved nearly 7,240 ETH, worth $21.4 million, to Kraken. This transaction marked the start of ETH’s price decline. This trader reaped a significant profit of $12.83 million, showcasing a remarkable 149% gain after holding the ETH for over 1.5 years. These substantial deposits underscore the prevailing bearish sentiment in the market.
Technical Analysis: Bearish Signals
Expert technical analysis points to a bearish outlook for ETH, which currently hovers around a crucial support level of $2,850. The technical indicators also signal further bearish trends. On a daily timeframe, ETH is trading below the 200 Exponential Moving Average (EMA). If ETH closes below the $2,850 support level, there is a high likelihood it could plunge over 9% to around $2,600.
However, there remains a possibility of a rebound if the bulls provide enough support. A daily candle closing above the $3,080 level could potentially drive ETH to the $3,250 mark.
At the time of writing, ETH is trading near the $2,900 level, reflecting a 4% price drop. This decline has spurred a 30% increase in 24-hour trading volume, indicating heightened participation from investors and traders. Over the past week, ETH has seen a 16% decrease in value, while the past 30 days have recorded a 20% loss.
The recent activities of these two smart traders and the subsequent market reaction highlight the ongoing unpredictability and risk inherent in the cryptocurrency market. Investors should stay vigilant and closely monitor market trends to navigate these turbulent waters.
