Ethereum FOMO Trader Bags $3M Coins As ETH Price Rallies 10%

Ethereum price has surged nearly 8% in the past 24 hours and has caused notable trading activity among both retail investors and whales. On-chain data from Lookonchain reveals a case of “buy high, sell low, then buy back even higher” behavior from one trader.

Ethereum trader makes a FOMO move

Blockchain analytics platform Lookonchain has identified what they describe as a “peak FOMO trader” whose Ethereum trading history shows classic emotional decision-making in volatile markets. According to their tweet, this trader initially purchased 1,805 ETH for $6.42 million at a price of $3,559 approximately six months ago.

As Ethereum’s price dropped, the trader held their position until about two weeks ago, when they sold their entire holding at a substantial loss of $3.6 million. This is a 56% decrease from their initial investment. The selling decision proved poorly timed, as it came shortly before the current price rally.

Following ETH’s recent price increase, the same trader has now purchased 1,734 ETH worth $3.11 million at a price of $1,792. While this entry point is significantly lower than their original purchase price of $3,559, it is higher than the price at which they recently sold.

This pattern of buying at market highs, selling during downturns, and then repurchasing as prices begin to rise again typifies emotionally-driven trading that often results in poor outcomes. As per the latest data, Ethereum whales accumulated $100 million in ETH recently.

Whales begin accumulating as ETH pumps

Despite the overall price rally, on-chain data reveals different behaviors among Ethereum whales. Lookonchain reports that some large holders are actively accumulating during the price increase. A particular wallet has withdrawn 5,531 ETH (valued at $9.8 million) from Binance within a single hour.

Similarly, another address identified as 0x2088 spent 4.61 million USDC to purchase 2,568 ETH at an average price of $1,794 over a 40-minute period. But not all that the whales have been doing is positive. In another move, Lookonchain found a large holder who was borrowing 15,000 ETH ($24.9 million worth) from lending platform Aave, likely with the aim of selling.

As per their tweet analysis, this wallet also withdrew another amount of 35,754 ETH ($64.13 million worth) from Aave and sold all the last bits within three hours at an average sale price of $1,794. Technical analyst Cas Abbé has emphasized the importance of recent price action in a recent tweet.

According to him, ETH has posted a “much needed breakout” of its long-term trend by closing above the trendline for the day. In the case of the market continuing to move higher, the analyst predicts that ETH could go up to $2,300 to $2,500 in May.