blockchainreporter.net
In a surprising turn of events, a major Ethereum investor, who was recently liquidated during the market crash on August 5, has re-entered the market with substantial purchases of Ethereum (ETH). The whale, previously liquidated for 2,890 wrapped staked Ethereum (wstETH), valued at $8.06 million, is now making headlines by going long on ETH once again.
A whale who was liquidated for 2,890 wstETH($8.06M) during the market crash on Aug 5 is back to buying and going long $ETH again!
— Lookonchain (@lookonchain) August 13, 2024
He has borrowed 6.6M $DAI, 2.7M USDT and 2.5M $USDC to buy 4,459 $ETH($11.8M) at $2,646 since Aug 11.
Address:… pic.twitter.com/5bCmZNpkyc
On August 5, the cryptocurrency market experienced a significant downturn, resulting in the liquidation of several large positions. Among those affected was a whale holding 2,890 wstETH, equivalent to $8.06 million at the time. The liquidation was a notable event, highlighting the volatility and risks inherent in the cryptocurrency market, particularly during sharp declines.
A Strategic Comeback
Despite the recent setback, the whale has shown confidence in Ethereum’s potential by strategically re-entering the market. Since August 11, the investor has borrowed a total of $11.8 million in stablecoins, including 6.6 million DAI, 2.7 million USDT, and 2.5 million USDC. These funds were used to purchase 4,459 ETH at an average price of $2,646 per ETH.
This move indicates a renewed bullish sentiment toward Ethereum, as the whale positions himself for potential gains following the market’s recent volatility. The significant borrowing and subsequent investment suggest a strong belief in Ethereum’s long-term value and recovery potential.
The whale’s re-entry into the market has sparked discussions and speculation among traders and analysts. Some see it as a signal of confidence in Ethereum’s fundamentals, while others caution that the market remains unpredictable, and such large moves could lead to further volatility.