Ethereum
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1,793 has surged nearly 8% in the last 24 hours, testing the $1,800 level. However, this rise casts a shadow on the imbalances in trader behavior and controversial transactions. Market observers emphasize that both individual traders and large-scale investors are making decisions based on emotional responses.
Emotional Moves Bring Losses
According to data from blockchain monitoring platform Lookonchain, an unnamed trader has executed highly controversial transactions over the past six months. This trader purchased 1,805 ETH when Ethereum was valued at $3,559 last year, spending approximately $6.42 million. However, when the market fell, this position resulted in significant losses. About two weeks ago, the trader liquidated all their ETH holdings, incurring a loss of $3.6 million. Interestingly, this sale occurred just before Ethereum was on the verge of a new rally, indicating a rather unfortunate timing in decision-making. It became evident that lessons were not learned from this loss. Just a few days ago, when the ETH price was at $1,792, this same trader purchased 1,734 ETH. While this move seemed advantageous compared to the previous purchase price, it still occurred above the level they sold at a loss. Lookonchain summarized this trader’s actions as “buy high, sell low, then buy back higher.”
Whales Continue Buying Amid Price Surge
With Ethereum surpassing $1,800 again, large investors have also taken action. Some whale wallets drew significant amounts of ETH from exchanges, notably withdrawing 5,531 ETH from Binance in just one hour. Additionally, another investor bought 2,568 ETH for 4.61 million USDC. These transactions indicate that confidence in Ethereum remains strong among large investors. Particularly during price surges, these purchases have the potential to influence market dynamics significantly. However, not all moves have been purchasing ones. A whale that borrowed 15,000 ETH through the Aave platform appears to be preparing to sell this amount. Moreover, it has been reported that a total of 35,754 ETH has been withdrawn and sold recently, highlighting the ongoing volatility in the market. Technical analyst Cas Abbé noted a critical break in Ethereum’s long-term chart. Abbé suggests that if the upward momentum continues, ETH could trade between $2,300 and $2,500 by May. However, the realization of this scenario depends on traders adopting more cautious and strategic approaches. Market experts warn that transactions driven by emotional decisions can lead to severe losses. They emphasize the necessity of being prepared for sudden price movements and adhering strictly to risk management rules.
