Observing smart whales’ movements can provide valuable insights for crypto traders and investors navigating cryptocurrency waters. These are highly capitalized addresses with a profitable trading history.
Recently, a smart whale trading Ethereum (ETH) closed a position worth $21 million for a profit of $5.32 million.
According to a post by Lookonchain on X (formerly Twitter), the address acquired 7,429 ETH worth $16.5 million on January 26 and sold the entire position at $2,937 per token on February 23.
ETH/USD 4-hour chart with the smart Ethereum whale buy/sell operations. Source: Lookonchain
Ethereum price analysis amid smart whale activity
Notably, Ethereum surged by 100% during these four months from the smart whale’s first purchase to its last sell-off. In the meantime, ETH traded as low as $1,522.84 and as high as $3,032.36.
This impressive performance now places Ethereum with an overbought Relative Strength Index (RSI) in the daily chart. Such a status hints at a price correction at any moment, which might explain the smart whale’s recent activity.
Interestingly, the 50-day exponential moving average (EMA) could act as support. It is currently floating around $2,550 for approximately a 13.5% drop from $2,957 by press time.
ETH/USD daily chart on Binance. Source: TradingView (Finbold)
In summary, a smart whale is a profitable trader moving large sums, which the market can observe for insights. This Ethereum smart whale has profited over $10.66 million in four months, now selling in a bearish bias.
Nevertheless, investors should not be blindly following other people’s movements. Instead, they should learn and build their own strategy, understanding the risks and the market’s volatility.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
