Ethereum ($ETH) Whale Re-Enters Market Despite Prior Losses

A whale, a major player in the world of cryptocurrencies that makes large transactions and has a significant impact on the market, has re-entered trading in Ethereum. Although he has made a long on the asset before and has sustained losses of about $ 4.63 million, the whale is still optimistic about the future.

This whale, who previously lost $4.63M by going long $ETH, is going long $ETH again.

He has withdrawn 6,965 $ETH($21.9M) from #Binance and deposited it to #Compound in the past hour, then borrowed 14.5M $USDT.https://t.co/HvLu7N4DnM pic.twitter.com/dwWYCW3rq7

— Lookonchain (@lookonchain) May 5, 2024

Whale Borrows $14.5M USDT in Ethereum Bet

This time, the whale decided on several strategic moves. First, it withdrew a large amount of Ethereum, specifically 6,965 ETH, or about $21.9 million, from Binance, one of the most popular exchange platforms for cryptocurrencies.

Funds were not wasted, instead, the whale used Compound, the decentralized lending protocol. After depositing ETH, the cryptocurrency investor borrowed a large amount of USDT, namely $14.5 million. USDT is a stablecoin, a digital currency that tracks the US dollar. Thus, borrowing this sum reveals the whale’s faith in Ethereum’s growth.

Despite setbacks, Whale Continues to Engage in Ethereum Trading

This move was not the first recent setback for the whale, which previously lost money due to the downturn price of April 29. Following the price reduction, the whale had realized its position, with 11,892 ETH worth about $38 million, deposited on the Binance exchange, withdrawn for further sale. The move resulted in profit-making, as a result, of approximately $217,000. However, unlike the previous position, the April 29 move was in the opposite direction.

Overall, while it is worth acknowledging that this particular whale has had its share of setbacks, its attachment to ETH trading is noteworthy. This is because starting from March 20th, it has made a total of three ETH longs, indicating its persistence and readiness to try high-intensity cryptocurrency trading. Ethereum’s outlook for the future also remains unclear. However, the decision to come back by the whale will surely be watched closely.

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