In a recent transaction, the ETH whale sold 18,000 ETH for a profit of 8.45 million USD after buying at a low price.
However, prior to this, the whale executed poorly timed trades, reducing the amount of ETH held and incurring a loss of over 50 million USD in asset value compared to holding the initial amount of coins.
MAIN CONTENT
The ETH whale sold 18,000 ETH at an average price of 3,059 USD/ETH, raising 55.34 million USD.
Profit from the buy-sell price difference is approximately 8.45 million USD.
Irrational buying and selling decisions caused total assets to decrease by more than 50 million USD compared to holding a larger amount of coins.
How did the ETH whale execute trades to profit 8.45 million USD?
The latest transaction of the ETH whale witnessed the sale of 18,000 ETH at an average price of 3,059 USD/ETH, generating a profit of 8.45 million USD compared to the purchase price of 2,592 USD/ETH back in May this year. This is the result of analysis from on-chain expert Yu Jin, demonstrating experience in leveraging price fluctuations.
"Taking advantage of low buying and high selling points is essential, but it must be timely to maximize profits."
Yu Jin, on-chain analyst, July 2024
Why did the low-sell high-buy trading earlier cause the whale's assets to decrease significantly?
This whale once held 35,754 ETH, but due to buying back at high prices after selling at low prices, the amount of ETH is now only 19,302. If the entire 35,754 ETH had been held until now with the market price of approximately 5,650 USD/ETH, the asset value would reach 109 million USD instead of 57.05 million USD. Selling low and then buying high resulted in a loss of more than 50 million USD in asset value, highlighting the risks of inaccurate trading strategies.
"Mistakes in taking profits and buying back can turn profits into significant losses in the volatile cryptocurrency market."
Nguyễn Quang Huy, financial investment expert, 2024
What lesson does this example teach about cryptocurrency asset management experience?
The above incident clearly illustrates the risks of trading based on emotions in the cryptocurrency market. Maintaining assets instead of continuously trading can create higher value in the long term. Especially for whales, each decision significantly impacts total assets. According to a 2024 Chainalysis report, whales control over 40% of total Ethereum liquidity, indicating their level of influence.
Comparison table of the impact between holding coins and poorly timed trading by ETH whales
Evaluation points Holding ETH intact (35,754 ETH) Performing low-sell high-buy (19,302 ETH) Amount of ETH 35,754 ETH 19,302 ETH Average selling price – 3,059 USD/ETH Buyback price 2,592 USD/ETH (previous round) higher than initial purchase price Current asset value 109 million USD 57.05 million USD Loss due to poorly timed transactions – 50.31 million USD
Frequently Asked Questions
Who are ETH whales and how do they influence the cryptocurrency market? ETH whales are large investors who hold significant amounts of Ethereum, greatly impacting prices and market trends, according to Chainalysis data from 2024. Why can low-sell high-buy trading cause significant asset losses? Selling low and then buying high reduces the asset amount while missing out on price appreciation potential, leading to overall asset value loss. What are the benefits of holding coins long-term? Holding coins long-term allows investors to take advantage of upward price trends, reduces risks from short-term volatility, and lowers trading costs. How to determine reasonable buy-sell points in the cryptocurrency market? It is necessary to combine technical analysis, fundamental analysis, and monitor on-chain signals to make accurate decisions, according to experts' experiences. What are reputable reports to track cryptocurrency whale activities? Reports from Chainalysis, Glassnode, and on-chain analysts like Yu Jin are highly regarded for their accuracy and professionalism.
Source: https://tintucbitcoin.com/eth-whale-ban-18-000-eth-gay-soc/
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