Chinese Ethereum Whale Sells 5,000 ETH As Sell-Off Continues

A Chinese Ethereum whale has sold 5,000 ETH, fueling the ongoing market sell-off and raising concerns over further downside pressure.
By Coingape Staff
Longling Capital sells 5,000 ETH worth $21.56M, joining BlackRock and the Ethereum Foundation in major Ethereum profit-taking moves.

Highlights

  • Chinese firm Longling Capital sold 5,000 ETH worth $21.56M in a profit-taking move.
  • The sale is part of a disciplined Ethereum trading strategy dating back to 2022.
  • Analyst Ted Pillows see the sale as profit-taking, not bearish momentum, with ETH holding support at $4,219.

Chinese investment firm Longling Capital has proceeded with a significant sale of Ethereum (ETH). The firm sold 5,000 ETH worth $21.56 million earlier today, in a bid to secure profits. This latest transaction adds to the firm’s long record of liquidations.

Advertisement
Advertisement

Lookonchain Reveals Longling Capital’s Ethereum Sale

On-chain analytics platform Lookonchain reported that Longling Capital deposited 5,000 ETH to an exchange, triggering the $21.56 million sale. This acquisition is one in a larger, more strategic play that the company has been working on with Ethereum since 2022. Their method centers on timing deposits and withdrawals to capture market gains.

The plan is initiated by the enormous decrease of 123,405 ETH from Binance. Acquired at an average price of $2,349, the holdings were valued at roughly $290 million at the time. Longling Capital preferred to hold the assets over various periods, and it was sufficient before subjecting the assets to trading. 

Lookonchain’s findings underline that such actions, when taken with careful planning in mind, illustrate more than immediate profit-taking. Instead, it shows how sophisticated and well-disciplined Longling Capital’s Ethereum strategy is.

Furthermore, BlackRock has also reportedly sold $87.2 million worth of Ethereum. This marks one of its most significant ETH disposals in recent months.

Notably,  just last week, a wallet linked to the Ethereum Foundation sold millions of dollars’ worth of ETH. As CoinGape reported, the wallet offloaded 4,095.18 ETH, valued at roughly $18.75 million. This transaction was in exchange for DAI stablecoin at an average price of $4,578 per ETH.

Advertisement
Advertisement

A Look Into Longling Capital’s ETH Strategy

The recent sale of 5,000 ETH was just one of the extensions of the profit-taking exercise at Longling Capital. The firm has redeposited significant amounts of its holdings to the exchanges in the course of time. They converted earlier positions into realized gains. It is also a very effective structured method of ensuring wealth accumulation.

A major highlight came when Longling Capital deposited 70,800 ETH at an average price of $3,502. The move brought in around $248 million. Compared to the earlier acquisition price, this transaction alone generated an estimated profit of $184 million. Such figures underline the remarkable outcomes of patience combined with precise timing.

The firm did not keep its profits in the coffers.  Instead, it exploited this opportunity to utilize the available returns whenever it was possible in the market. Such focused implementation not only makes it grow financially, but it also secures liquidity to exploit investment opportunities in the future.

Advertisement
Advertisement

Potential Market Impact from the Ethereum Sale

Longling Capital’s strategy offers valuable lessons to both institutional investors and individual investors. The main concepts are quite obvious: monitor markets, acquire assets in favorable conditions, and profit from rising prices. The actions assist in lowering risk and making maximum returns.

In the case of smaller investors, the scale can vary, but the method can be used. Establishment of profit goals, eliminating emotional decisions, and acknowledgment of the cycle can help one achieve better results in fluctuating markets such as the Ethereum price.

Concerning the market impact, the sale of 5,000 ETH reshapes the market but does not complete its disruption due to Ethereum liquidity. Analysts think of it as a profit-taking rather than a bearish signal. The activities of Longling Capital highlight the importance of systematic asset management by applying sound principles to make significant returns when trading in crypto.

Crypto analyst Ted noted that Ethereum is currently holding support at $4,219. According to him, maintaining this level could pave the way for a recovery toward the next resistance at $4,474. He added that a brief dip in liquidity around $4,000 may occur before the upward move due to the sell-off.

Source: X
Advertisement
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.