A “smart money” bought 4,000 Ethereum (ETH) tokens worth $12.58 million on Friday. The transaction drew attention, not only due to the prevailing market conditions but also because of the trader’s track record of successful purchases.

Retail investors and smaller traders often look to smart money investors for cues on market direction and potential investment opportunities.

Ethereum Whale Buys 4,000 ETH

Lookonchain highlighted that this “smart money” investor has a 100% success rate, having bought and sold ETH seven times between November 21, 2022, and May 23, 2024. In each instance, they bought at low and sold at high prices, consistently making a profit. To date, this investor has made up to $38 million in profit.

“A smart money with a 100% win rate bought 4,000 ETH ($12.58M) again 5 hours ago! This smart money bought and sold ETH 7 times from Nov 21, 2022, and May 23, 2024, buying at low prices and selling at high prices each time, with a 100% win rate and a total profit of more than $38M! He has bought 17,012 ETH ($61M) at an average price of $3,587 since May 29 and lost $7.6M at the current price,” Lookonchain reported.

Smart money typically refers to large institutional investors, hedge funds, and professional traders with significant experience, resources, and expertise in the financial markets. These entities often have access to advanced trading tools, research, and market insights that can give them an edge in making profitable trades.

Read More: How to Buy Ethereum (ETH) and Everything You Need to Know

Whether the latest buy will add to smart money’s winning streak remains to be seen. Nevertheless, such transactions tend to influence price movements and market sentiment, as retail interprets them as bullish. This is considering smart money’s expertise in identifying opportunities and executing trades strategically.

In a separate report, Lookonchain identified three wallets related to Elwood Technologies depositing 19,500 ETH worth $63.66 million to Binance. Elwood is a global fintech that builds digital asset infrastructure for institutional investors. According to the report, the wallets’ deposits always preceded Ethereum’s price crashes.

“We noticed 3 wallets related to Elwood deposited 19,500 ETH ($63.66M) to Binance in the past 2 days! Coincidentally, these wallets deposited ETH to Binance every time before the price crashed,” Lookonchain observed.

When token holders move their holdings into exchanges, it is often a bearish sign, indicating the intention to sell. However, the market dynamics are complex, with large transactions causing volatility. Individual traders should conduct their own research and analysis before making trading decisions.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

Meanwhile, BeInCrypto data shows Ethereum is trading for $3,158 at press time, down 1% since Friday’s session opened. Amidst the downtrend characterized by a series of lower highs, Ethereum could find an inflection point soon. It eyes the demand zone between $2,924 and $3,075, where buyers are likely to be present in large numbers.

Demand zones are areas where traders and investors are interested in buying an asset, either to accumulate at lower prices or to take advantage of a potential price rebound.

ETH/USDT 1-day chart, Source: TradingView

However, Ethereum’s price could slip to provide another buying opportunity around the $2,800 threshold if the demand zone fails to hold as a support floor.