One of the largest on-chain Ethereum transactions has come to light, as a hacker has sold 9,240 ETH (equivalent to about 34.88 million) when the market crashed. The hacker sold the Ethereum at an average price of $3,775, resulting in a calculated loss of $4.56 million.
The analysts have spotted the event but have pointed out that the same wallet had already purchased the same quantity of Ethereum a few days ago at a significantly higher price.
A Costly Trading Mistake in a Volatile Market
The hacker had only three days earlier accumulated 9240 ETH with an average price of $4269, spending around 3945 million dollars.
The market price of Ethereum is currently $3,680, which has fallen by 14% in the last four days.
According to analysts, such a panic-sell move reflects on the emotional responses that tend to be triggered by volatile markets as well as the absence of a trading policy by those involved in the illicit market.
Ethereum Price Metrics Show Signs of Strain
Technical data indicates that Ethereum is still under short-term sell pressure.
The daily Relative Strength Index (RSI) is at 36, and the 50-day Exponential Moving Average (EMA) is at $4,200, which is a major resistance point.
Trading has been on the rise despite the drop in the price. The 24-hour trading volume for Ethereum increased by 28.28%, reaching $58.24 billion, indicating that both whales and retail traders are seizing the opportunity to reposition themselves as prices decline.
The market watchers observe that such selling off and liquidations may be painful in the short run but usually reset the market, where new accumulations could then occur.
Panic Selling Underscores Market Fear
The decision seems rushed, and this is an indication that the hacker has suffered a psychological effect from the market crashes even when they have a substantial holding.
With Ethereum still swinging around the 3,600-3,800 price, traders are sitting and waiting to see whether it can recover above the $4,000 mark.
In the meantime, this event can be regarded as a reminder that emotional trades, in unstable environments in particular, might result in large losses, even to the most infamous actors on the cryptocurrency scene.
