Despite upcoming unlock, Ethereum is seeing large inflow of funds from professional traders
Ethereum, the world’s second largest cryptocurrency by market capitalization, has recently witnessed a significant spike in buying activity from “smart money” wallets. These wallets, known for their exceptional trading performance, have even demonstrated a remarkable 90% win rate, making nearly every trade they execute highly profitable. This influx of smart money purchases comes just ahead of the anticipated staking contract unlock, which could impact Ethereum’s price in various ways.
At the time of writing, Ethereum is trading at $1,889, breaking through the ascending channel, indicating a potential bullish trend. The increased buying pressure from smart money wallets could be a contributing factor to this upward momentum. These high-performing wallets are typically operated by experienced and well-informed traders who recognize lucrative investment opportunities and act accordingly.
A $GMX whale bought 60,958 $GMX with 2,568 $ETH ($4.9M) at a price of $80 again 4 hrs ago.
The whale bought 41,362 $GMX with 1,851 $ETH ($3.3M) at a price of $79.2 on Mar 14.
And received 6,324 $GMX($472K) from #Binance at $74.6.
Currently holds 108,644 $GMX($8.76M). pic.twitter.com/EPkiGognzl
— Lookonchain (@lookonchain) April 5, 2023
The staking contract unlock, which is expected to take place soon, could impact Ethereum’s price both positively and negatively. On the one hand, the unlock event may lead to increased selling pressure as users who staked their ETH tokens gain access to their assets, potentially causing a temporary price dip. On the other hand, the unlock brings more control over staked funds on the network, contributing to the overall safety and convenience of the network.
The recent spike in smart money purchases of Ethereum serves as a strong indicator of the cryptocurrency’s potential for growth and profitability. As these high-performing wallets continue to invest in Ethereum, their actions may encourage other market participants to follow suit, potentially driving the price even higher.
However, sometimes, professional traders execute trades at a fairly high frequency and make moves beyond beginner’s expertise, which is why blindly following their trades might lead to significant losses.