Ethereum Surges by 8% Following Whale Accumulation and FOMO Trader Re-Entry
With a nearly 8% increase within the last twenty-four hours, Ethereum’s price surge triggered a new wave of activity across crypto markets. According to on-chain analytics from Lookonchain, there are notable movements from both retail and whale investors, with one trader’s action characteristics portraying a clear case of behavioral finance.
Lookonchain tracked a trader whom they nicknamed as “peak FOMO trader,” depicting the psychology of the “buy high, sell low but buy high again” trap. This trader seems to fall into the category after he bought 1,805 ETH six months ago with a price tag of $6.42 million.
That meant each coin was priced around $3,559. Eventually, as prices fell, the trader held the position for months and only two weeks ago decided to sell the entire stake for $2.82 million. This self-destructive decision incurred a staggering $3.6 million loss, which is a whopping 56% hit on his original investment.
Funnily enough, the trader jumped back into the market right after selling due to an Ethereum price rally. Sensing the price on the uptrend, they bought 1,734 ETH at $1,792 per token, totalling $3.11 million. While this amount was significantly less his original entry point, Ethereum’s surge meant he stood to profit compared to his recent exit price.
This behavioral trait driven by panic and fear of missing out often results in escalating losses and additional unattended blows.
The emotional instability shown by singular traders is not matching the Android-like precision of Ethereum whales. One ETH whale address, for example, has withdrawn 5,531 ETH (~9.8 million dollars) from Binance in the single hour, amounting to more than 100 million dollars worth of ETH cumulated throughout the rally. Another wallet of 0x2088 tagged ETH Chamber, in just 40 minutes, spent 4.61 million USDC buying 2,568 ETH at a price slightly above 1794 dollars.
Not all of whale movements are bullish. Lookon chain reported a wallet who borrowed 15,000 ETH from Aave lending platform (putting up 24.9 million dollars in value) only to sell. That same address later on withdrew 35,754 ETH (64.13 million dollars) and sold out the total amount within three hours at the price of 1794.
Against all of this, technical analyst Cas Abbé marked Ethereum, in one of his recent tweets, surging above a long term downtrend and has broken a worrying sign where the price closes below a critical trendline. He considers this a firmly bullish sign and predicts with some continuation of the rally, ETH might touch $2,300-$2,500 by the end of May.
Whales moving strategically coupled with high volatility emotions are proving to make Ethereum’s recent surge a tipping phenomena for the market.
