Ethereum News Today: Major Crypto Trader Stakes $2.55B in ETH After 3.83% Price Drop and 42.5M Profit

A major cryptocurrency trader has acquired 544,977 Ethereum (ETH) tokens, valued at approximately $2.55 billion, over a six-day period and staked the entire amount following the closure of leveraged positions[1]. The investor, described as a long-time Bitcoin enthusiast, closed 130,564 ETH long contracts at an average price of $4,692, generating a profit of $42.5 million. This strategic move marked a significant shift from leveraged exposure to a more conservative, yield-generating position[1].

According to on-chain analytics from Lookonchain, the trader initially liquidated long contracts before executing a substantial spot purchase of 33,381 ETH at a cost of $155 million. This action added to a series of transactions that accumulated the massive ETH position, all of which were subsequently staked[1]. The move not only locked in realized gains from the leveraged positions but also positioned the trader to benefit from Ethereum’s staking yields while reducing short-term market risk.

As of the latest data, Ethereum traded at $4,428, reflecting a 3.83% decline over the past 24 hours. The price experienced a sharp drop overnight, falling below the $4,500 level and consolidating around the $4,400 mark. Despite minor recoveries, the asset remained under strong selling pressure, with daily trading volume reaching $62.6 billion, an increase of 3.73% compared to the previous day[1].

Technical indicators suggest Ethereum is holding within a defined range between $4,311 and $4,820. The Relative Strength Index (RSI) closed at 62.94, indicating strong momentum but not yet reaching overbought territory. The Moving Average Convergence Divergence (MACD) showed a signal line of 213.46 and a MACD line of 240.42, with the histogram slightly negative at -26.96. This suggests a narrowing spread between the lines and a slowdown in upward momentum compared to earlier gains[1].

The trader’s move highlights a broader trend of de-risking in a volatile market. By exiting leveraged positions and staking a large portion of the proceeds, the investor is effectively hedging against further price declines while capitalizing on Ethereum’s current yield opportunities. The timing of the trades, amid a bearish price action and moderating momentum, suggests a calculated approach to navigating the current market environment[1].

Source: [1] Crypto Trader Stakes 544,977 ETH Worth $2.55B After Exiting Leveraged Positions as Price Slips 3% (https://cryptonewsland.com/crypto-trader-stakes-544977-eth-worth-2-55b/)