A smart money trader made profits 20 times out of 25 by trading ETH.
If ETH retraces, $2,160 may be a good entry point as the coin may later hit $2,400.
Short will most likely be liquidated as long as the current ETH momentum holds.
Trading cryptocurrencies can be tricky for inexperienced players. But for smart money traders, price swings can be vital for making gains, and that was the case with a trader who has made $3 million in profit from trading Ethereum [ETH].
20 Wins Out of 25
According to Lookonchain, this trader sold all of his ETH for $6.35 million at an average price of $2,230. Although the recent profit was around $457,000, the same trader has exchanged ETH 25 times in the past 365 days. Lookonchain also mentioned that the trader made gains 20 times out of the possible 25.
A smart money who is good at trading $ETH sold all 2,850 $ETH($6.35M) at $2,230 in the past 6 hours, making ~$457K.He/she has traded $ETH 25 times in the past year, winning 20 times (the selling price is higher than the buying price), with a total profit of more than $3M. pic.twitter.com/we5vLfZ5ZM
— Lookonchain (@lookonchain) December 4, 2023
While moves like this are rare, ETH’s recent price action played a role in the trading outcome. At press time, ETH changed hands at $2,251. Previously, Coin Edition had reported how the altcoin tight-trading range called for concern.
But the bullish momentum in the last seven days ensured that ETH crossed the $2,000 psychological area once again. Per the ETH/USD 4-hour chart, the altcoin’s bullish momentum was so strong such that bears may find it hard to stop.
ETH Targets $2,400
Using the Fibonacci extension level, the chart showed that the 1.618 level may serve as an instrumental region for ETH. As a key variable, the 1.618 Fib level was at $2,160. This means that if ETH retraces, the $2,160 could be the support that may prevent it from plunging below the level.
Also the 4.236 Fib extension level was at $2,400. Since ETH was in an uptrend, this level means that the coin has the potential to reach $2,400. But if ETH hits this price, there could be some sort of resistance. So, traders looking to short may place an entry at this level while projecting a price reversal.
ETH/USD 4-Hour Chart (Source: TradingView)
Coin Edition also considered the Moving Average Convergence Divergence (MACD) as shown above. As of this writing, the MACD was 10.66 suggesting increasing upward momentum. So, the likely position to open at this level is a long and refrain from opening a short ETH contract.
Also, the 12-day EMA had outpaced the 26-day EMA, indicating that buyers’s control in the market is enormous. Should buying pressure for ETH continue, the coin may hit $2,300. If it crosses this level, it could be a sign that a full-blown bull cycle is here, and traders should watch out.
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