Crypto trader loses over $2 million in 5 days as market tanks
A cryptocurrency whale wallet identified as '0x1b57' sold 5,570 Ethereum (ETH) worth approximately $19.56 million at a significant loss after failing to time the market bottom. The ETH was offloaded in three large batches to Binance, with the trader realizing an estimated $2.15 million loss as Ethereum prices continued to decline. This sell-off aligns with broader crypto market weaknesses, with Ethereum dropping over 15% in the past week. ETH is trading at $3,508, below its 50-day SMA, indicating short-term bearish momentum. The 200-day SMA of $3,316.08 now serves as a crucial support, while the RSI at 36.72 warns of possible selling exhaustion amidst ongoing volatility.
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Whale's Costly Ethereum Dump Amid Market Turmoil
As the broader cryptocurrency market experiences massive capital outflows, a whale has suffered a costly misstep, dumping thousands of Ethereum (ETH) at a steep loss after attempting to time the market bottom. The wallet identified as 0x1b57 offloaded 5,570 ETH (approximately $19.56 million) over several hours, sending the funds to Binance in three large batches:
- 2,070 ETH ($7.26M),
- 2,000 ETH ($7.01M),
- 1,500 ETH ($5.28M).
This information comes from on-chain data obtained by Finbold from Arkham on November 4.
Trader's Failed Attempt to Catch the Bottom
The trader had accumulated the same amount of ETH just five days earlier from Binance hot wallets. However, as prices continued to slide, the trader was forced to capitulate, realizing an estimated $2.15 million loss. Despite attempting to “catch the bottom,” the intensifying selling pressure pushed the trader to exit their position prematurely.
Impact on Ethereum and Broader Market
This sell-off by a prominent whale aligns with the broader crypto market weakness, heavily impacting Ethereum. Recently, Ethereum extended its declines amid widespread risk-off sentiment in digital assets. Whale activity often exacerbates downward pressure on Ethereum’s price, as markets tend to react negatively to significant sell-offs by large holders.
Ethereum's Recent Performance Analysis
Ethereum has been among the biggest losers in the past week, plunging over 15%. As of press time, ETH was trading at $3,508, marking a decline of more than 5% in the past 24 hours. At its current valuation, Ethereum is well below its 50-day SMA of $4,094.6, signaling a loss of short-term support and confirming bearish momentum.
Key Support Levels and Indicators
The 200-day SMA at $3,316.08 now serves as the next critical level for Ethereum. Holding above it would preserve the long-term uptrend, while a break below could signal a deeper correction. Furthermore, Ethereum’s 14-day RSI stands at 36.72, a neutral level that indicates room for further downside. While not yet oversold, the RSI suggests that selling exhaustion could occur if volatility spikes.