A well-known Ethereum whale is betting against the recent ETH price recovery.

On-chain analyst @ai_9684xtpa reported via X that this whale borrowed 4,000 ETH (worth about $7.25 million) from the DeFi lending platform Aave.

A well-known Ethereum whale is making a big bet against the recent ETH price recovery.

According to on-chain analyst @ai_9684xtpa, the whale borrowed 4,000 ETH (worth about $7.25 million) from the DeFi lending platform Aave. The analyst noted the whale borrowed this ETH specifically to open a new short position.

04.13 以来 $ETH 波段获利 102.9 万美元巨鲸 又开始头很铁地冲 Aave 借 ETH 卖空 了！这次能拿回属于他的一切吗

在 04.22-04.25 借币做空 ETH 亏损 38.2 万美元后，11 小时前，他又一次从 Aave 借出 4000 枚 ETH，作为最大持仓者，他的动向很大。

借到后开盘以 $1,808.62 卖空，价值 725 万美元

钱包地址 https://t.co/COpoOVctZC本文由 #Gateio |… pic.twitter.com/hYaLCIxu1l

— AI：最佳一集 | XChain 9684 (@ai_9684xtpa) April 26, 2024

This isn’t the first time the whale has made a large move. They’ve been actively swing trading ETH since mid-April. Earlier trades reportedly netted them over $1 million in profit. However, their luck seemed to turn between April 22nd and 25th.

During that time, the whale shorted ETH but got caught out when the price went up, forcing them to buy back higher. This resulted in losses totaling around $382,000 on those recent shorts. Now, despite those losses, they’re placing another large short bet.

Data showed that the whale’s average short selling price was $1,731, while the closing price reached $1,778.70, culminating in a realized loss of $14.23 million from an earlier 8,000 ETH position.

How ETH Price Reacted This Time

Despite these activities, Ethereum traded higher during the latest session, with the cryptocurrency changing hands at around $1,806 after registering a 1.85% daily gain. CoinMarketCap data showed a rise in Ethereum’s market capitalization to $218.05 billion, while daily trading volume climbed 5.05% to $15.88 billion. The network’s circulating supply remained stable at 120.72 million ETH, aligning with total supply figures.

A volume-to-market cap ratio of 6.95% pointed to active trading conditions. During the session, ETH dipped to $1,773 before the buying pressure pushed the price to nearly $1,820, showing a volatile but strengthening market environment.

What Exchange Flows Tell Us About ETH Supply

Examining broader on-chain data provides further context. Recent CoinGlass figures indicate that Ethereum flowing into exchanges and out of exchanges has been roughly balanced lately. This contrasts with late 2023/early 2024 when more ETH was consistently leaving exchanges (often viewed as bullish, indicating less supply available for selling).

Now, with flows balanced near the $1,800 price level, it raises the possibility of increased selling pressure from exchanges if the price tries to rise significantly.

Are More Users Engaging with the Ethereum Network?

Meanwhile, user activity on Ethereum seems to be heating up. CryptoQuant data revealed a resurgence in Ethereum’s active addresses.

After periods of fluctuating activity between mid-2022 and early 2024, the number of active addresses is incrementing again. However, past data showed that large spikes in user engagement did not necessarily translate into sustained price gains, rendering the possible impact of this trend uncertain.

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