In the last week, CoinMarketCap reports that Ethereum (ETH) has lost 10.31% of its value marking a highly negative performance for the prominent altcoin. However, most of this price loss was driven by a general market crash on Thursday, which saw about $1 billion wiped out from the total crypto market cap.
Interestingly, prominent on-chain analytics firm, Lookonchain reports that a particular “smart” whale was able to avoid this market turmoil by liquidating a substantial amount of ETH right before the market crashed.
Ethereum Whale Dumps 22,341 ETH Ahead Of Major Market Loss
According to a social media post on Friday by Lookonchain, a certain crypto whale sold 22,341 ETH, valued at roughly $41 million, just prior to the crypto market downturn this week. Lauding this liquidation move, the analytics team describes the investor to be “very smart.”
However, while this whale may have avoided the general market crash, Lookonchain reported they still recorded losses to the tune of $1.7 million.
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.
— Lookonchain (@lookonchain) August 18, 2023
As earlier stated, the crypto market suffered a widespread loss on Thursday, with most assets experiencing significant price dips. Based on multiple reports, this market downtrend was triggered by news of aerospace company SpaceX liquidating all its Bitcoin (BTC) holdings valued at $373 million.
As many would predict, this led to a massive market sell-off, with Bitcoin’s price declining by 12% to trade around $25,400. ETH, among other cryptocurrencies, followed Bitcoin’s trajectory falling from $1,808 to trade as low as $1,615.
Notably, the ETH market also experienced the largest single liquidation order on Thursday, worth about $55.92 million. In total, the ETH market recorded approximately $308 million in liquidations.
ETH Could Receive Market Boost Soon
In other news, the ETH market could record massive profits in the coming months based on news regarding the Ether-futures ETFs race in the US.
On Friday, Bloomberg reported that the United States Securities and Exchange Commission is ready to approve the first Ether-future ETF in the US, marking a major win for the crypto space.
Over the last few weeks, several asset managers have filed applications with the financial regulator to offer Ether-futures ETFs to investors in the US. These firms include Bitwise, ProShares, Grayscale, VanEck, Valkryie, etc.
Although it remains unknown which applications are getting immediate approval, anonymous sources close to the matter state that most applications would be cleared by October.
On the emergence of this news on Friday, Ethereum showed signs of recovery from Thursday’s crash, rising by 5% but soon hitting a strong resistance at the $1,700 zone.
According to data from CoinMarketCap, ETH is currently trading at $1,661.23, with a 1.67% loss over the last day.
Meanwhile, the token’s trading volume is down by 51.98% and is valued at $7.57 billion. With a market cap of $199.71 billion, Ethereum also remains the second-largest cryptocurrency in the world.