Ethereum whale sells $41m ETH before crypto market crash

Over the past week, the crypto market has suffered a significant fall, affecting all assets. The flagship altcoin, Ether, recorded a 10.31% drop on Thursday. Nevertheless, a clever whale managed to dodge the turbulence by liquidating a significant amount of ETH just before the crash.

The Ethereum whale’s winning strategy: Anticipation before the storm

Last week saw a violent upheaval on the crypto market. The widespread crash resulted in a loss of around $1 billion of the market’s total capitalization. This tumultuous episode was largely triggered by SpaceX’s decision to liquidate its Bitcoin (BTC) holdings, worth an estimated $373 million.

However, this news had a snowball effect, leading to a massive sell-off and causing a 12% reduction in the price of Bitcoin, in turn leading to a series of declines for ETH and other cryptos.

For example, ETH fell from $1,808 to $1,615. This trend was accentuated by the largest single liquidation on the ETH market, reaching almost $55.92 million in a single day. In total, liquidations on the ETH market reached some $308 million.

In the midst of all this turmoil, however, one Ethereum whale demonstrated a noteworthy strategic decision. According to Lookonchain, it sold 22,341 ETH worth around $41 million just before the market slowdown.

The whale was very smart and dumped 22,341 $ETH ($41M) before the market crashed.

Even though he lost ~$1.7M this time, he successfully avoided the market crash.

Perhaps he will buy $ETH back at a cheaper price in the future.

Follow this smart whale.👇https://t.co/S4Wv8XRlhW pic.twitter.com/BcdzdpmbIA

— Lookonchain (@lookonchain) August 18, 2023

This initiative was hailed by the analysis team as a smart move. Although it recorded losses of around $1.7 million, the stock managed to mitigate the effects of the widespread crash.

Despite recent setbacks, Ethereum’s prospects are bright. The coming months look set to be good ones, buoyed by developments linked to Ether-futures ETFs in the USA. Indeed, the US SEC is preparing to approve the first Ether-future ETF on US territory.

Several asset managers, such as Bitwise, ProShares, Grayscale, VanEck, and Valkyrie, have submitted applications to offer Ether-futures ETFs to US investors. Sources indicate that most of these applications could receive approval by October.