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Ethereum (ETH) Drops 5%, Mysterious Whale Shows 'Very Strange' Behavior: Lookonchain

Fri, 03/03/2023 - 10:21
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Yuri Molchan
Crypto tracker has spotted fund behaving strangely, moving large amounts of crypto around as Ethereum falls by 5%
Ethereum (ETH) Drops 5%, Mysterious Whale Shows 'Very Strange' Behavior: Lookonchain
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According to a recently published report by smart money crypto tracker Lookonchain, a mysterious fund has moved 322 million units of dollar-pegged stablecoin USDC to crypto exchanges in two portions.

The series of events that followed this has drawn the aforementioned tracker's attention as it involved the liquidation of over $240 million in crypto.

Ethereum plunges on Silvergate news

Lookonchain reminded the community about yesterday's crash of crypto-friendly bank Silvergate's share price, and that it caused a plunge in the crypto market led by the two largest coins: Bitcoin (BTC) and Ethereum (ETH).

Ethereum faced a drop of around 5%, falling from the $1,642 to the $1,553 level. Bitcoin nosedived by 6%, losing about $1,000 within one hour. That was a two-week low for BTC.

However, before ETH plummeted, its price saw a slight rise. This is where the "mysterious fund" mentioned by Lookoonchain steps in.

Mysterious fund moves bags of USDC to exchanges

Before ETH printed a huge red candle on the hourly chart, it saw a minor increase by almost 2%. At this point, an unknown fund withdrew 312 million USDC tokens from Circle that issues them and moved those hundreds of millions of stablecoins to various exchanges during the eight hours while the price uptick lasted.

During the time in which Ethereum rose, a few things happened. First, Coinbase posted a tweet that it stopped accepting or initiating payments with the aforementioned Silvergate crypto-friendly bank.

An hour later, the anonymous fund mentioned above began moving USDC from Circle and sending the crypto to digital exchanges.

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$240 million in crypto wiped out

Forty minutes before the Lookonchain tweet came out, the fund again made a withdrawal of 10 million USDC from Circle and pushed it over to crypto exchanges. Lookonchain stressed that "according to the data on chain, the behavior of this mysterious fund is very strange."

Then, during the four hours that preceded the tweet, a total of $210 million worth of cryptocurrencies was liquidated. Lookonchain wonders if this liquidation has anything to do with the USDC movements of the aforementioned fund but does not provide any answers or even guesses.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at