Bullish crypto trader borrows $12 million to buy Ethereum this week 
Cryptocurrency Aug 13, 2024 Share
A bullish cryptocurrency trader has borrowed nearly $12 million in three stablecoins to buy over 4,459 Ethereum (ETH) since August 11. These decentralized finance (DeFi) trading operations signal optimism at these prices, forecasting a surge for the leading Web3 infrastructure.
DeFi traders can leverage their holdings as collateral to borrow cryptocurrencies like stablecoins and open long positions buying an asset. Essentially, this allows investors to buy Ethereum without decapitalizing, sell at higher prices, and amass profits after repaying the loan. Finbold recently reported a similar operation from the world’s fifth-richest crypto investor.
In particular, Lookonchain reported one of these operations from the crypto wallet address ‘0x940df59ba33f3387deff3c2400fecf1286fcce4c’ on August 13. This trader has borrowed $6.6 million, $2.7 million, and $2.5 million in DAI, USDT, and USDC, respectively.
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Notably, August 5’s crash liquidated this Ethereum investor for 2,890 wstETH, worth $8.06 million in a similar operation. The trader, however, is again showing a bullish sentiment toward buying and accumulating ETH, unshaken by the recent losses.
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!
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
— Lookonchain (@lookonchain) August 13, 2024
Ethereum (ETH) price analysis – Is it time to buy?
As of this writing, Ethereum’s native token trades at $2,714 in the expectation of tomorrow’s Consumer Price Index (CPI). Lower-than-expected CPI data could have a positive influence on ETH’s price, as reported by Finbold earlier today.
ETH is down nearly 15% in the last 30 days, currently demonstrating a short-term uptrend with subsequent higher lows.
Ethereum (ETH) 30-day price chart. Source: Finbold.
Moreover, the current state of Ethereum points to a 2025 surge that ranges from $6,500 to $8,000. Finbold reported this mid-term forecast based on different fundamental and technical analyses that resulted in an ETH price prediction.
However, the ascent of more efficient and scalable layer 1 infrastructures competing with Ethereum’s dominance could partially absorb the demand, preventing ETH from achieving its full forecasted price performance.
Macroeconomic uncertainties can also act as an anchor moving forward, slowing down expected progress in the cryptocurrency market. Therefore, traders and investors must remain cautious and avoid overleveraged positions, applying proper risk management when deciding to buy Ethereum.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.