An on-chain analyst, Lookonchain, recently shared on Twitter how a savvy trader, referred to as ‘Smart Money’, made $7 million in profits by trading Ethereum (ETH) strategically. The trader executed well-timed trades, which resulted in impressive gains, and currently holds 20,891 ETH worth $36.7 million. Lookonchain uses the term ‘Smart Money’ to describe similar wise traders.
According to Lookonchain’s two-part Twitter thread, the ‘Smart Money’ withdrew 10,579 ETH from the FTX platform on July 5, 2022, when the price was $1,120. Following that, they used 44 million USDC to purchase 27,957 ETH at a discounted price of $1,573 during a USDC de-pegging event.
Six hours before the tweet, on March 21, 2023, the ‘Smart Money’ sold 4,000 ETH on Uniswap for a profitable price of $1,753 per ETH, yielding $7 million. Lookonchain’s observations suggest that the sale may have caused a 2% drop in ETH’s price.
Afterward, the ‘Smart Money’ transferred 16,000 ETH worth $28 million to the Binance platform, bringing their total holdings to 20,891 ETH worth $36.7M. The average holding cost is $1,464.
Lookonchain highlighted these trades to inspire followers to trade strategically. The ‘Smart Money’ identified the opportunity presented by the USDC de-pegging event, buying ETH at a discounted price. Additionally, they timed the sale of 4,000 ETH on Uniswap to coincide with a peak in ETH’s price, maximizing their profits.
Lookonchain advised their followers to keep an eye out for the ‘Smart Money”s next sell-off.