Ether whale places 24,000 ETH bet following a decline of unrealized profit of $55M to 14.4M. The conviction play indicates the long-term bullishness in spite of volatility.
A bold statement was made by an Ethereum whale. The investor increased the conviction rather than selling. Cointelegraph on X reported that whale 0x4825 purchased 24,000 ETH at a price of 2,529.
Source –  X
The acquisition occurred five months ago. His potential profit is high of over 55 million dollars. The market volatility reduced those gains to 14.4 million.
The majority of traders would sell in panic. This whale took another course. He staked all 24,000 ETH tokens.
The action shows incredible confidence. On December 5, 2024, Ethereum was trading at approximately 3,800. The location of the whale is still profitable even though the drawdown is present.
Why This Whale Chose Staking Over Selling
The strategy discloses more profound thoughts according to HaustNetwork on X. The whale doubled down at $2,529. Then he put all that in staking contracts.
HaustNetwork posted that there was no damage control. It is faith gambling on the compounding of yield. The emphasis is on gains in the next cycle.
Source: HaustNetwork
Staking offers passive earnings in the form of network rewards. Validators make net returns of about 3-4 percent. The ETH it has, 24,000, is yielding regularly.
This will eliminate the selling pressure on markets. Tokens that are locked cannot fill the exchanges. The whale is committed to the Ethereum proof-of-stake ecosystem.
Staking is considered bullish by market participants. It indicates long-term confidence in ETH. Whale drying supply usually occurs before price rallies.
Capital is serious with the USDC-invested 60.7 million. Not many investors have such resources. The wallet accountable traces up to institutional-level holdings.
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Market Implications of Whale Staking Activity
The 2024 Ethereum staking ratios are on the rise. Network data indicates that 28.54 percent of ETH is currently staked. This is a 5 percent year-on-year growth percentage.
These metrics are pushed up by whale activity. Big holders are more interested in staking instead of trading. It decreases the supply that is in circulation to sell.
Such on-chain movements are monitored by technical analysts. Price stability is usually associated with staking surges. Weaker selling pressure promotes the movement of the price upwards.
The entry price of the whale at 2,529 gives background. Today, prices range around 3,800, and the prices have increased. Although it lost 40 million in unrealized profits.
His move to remain and not to quit says a lot. The aim of patient capital is not flip. The behavior is usually developed at market bottoms.
Ether is in resistance at the present at around 4,000. To break through, it needs persistent buying pressure. Whale staking eliminates possible barriers to selling.
The switch to proof-of-stake altered the behavior of investors. Long-term holding patterns are rewarded with staking. Security-enhanced participation in a network increases security.