A major Ethereum whale recently incurred massive losses totaling around $118 million in ETH by withdrawing from and depositing to cryptocurrency exchanges at inopportune times, according to blockchain analytics firm Lookonchain.
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Whale Shifts ETH as Price Rises
Lookonchain reported that the unnamed whale initially withdrew a total of 123,000 ETH from exchanges when the price averaged around $3,672. This amounted to roughly $451 million worth of ETH at the time.
However, after the Ethereum price decreased, the whale then deposited 83,000 ETH back to exchanges at an average price of $2,246 per ETH, totaling $186 million.
Mistimed Transactions Result in $118 Million Loss
By withdrawing ETH from exchanges at a higher average price of $3,672 and buying back in at the lower $2,246 price point, the whale realized a loss of approximately $118 million in potential profits.
“The whale withdrew 123K ETH ($451M) from exchanges at an average price of $3,672 and deposited 83K ETH ($186M) to exchanges at $2,246, resulting in a loss of ~$118M,” noted Lookonchain.
Essentially, the whale sold ETH too early when the price was lower and repurchased later at a higher level after missing out on additional gains. The mistimed transactions resulted in the nine-figure loss.
Lesson on Taking Profits vs Timing the Market
The whale’s experience underscores the difficulties of trying to time the market perfectly compared to a more patient approach of taking profits. While taking profits is wise during market runups, prematurely exiting positions can also mean missing out on additional upside, as this ETH whale learned the hard way.
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