For example, one address swapped USDC for NGL on the Ethereum blockchain, then quickly sent the NGL to the Binance Smart Chain (BSC) and sold it for DAI stablecoins. This transaction resulted in a profit of $7 after deducting gas fees. However, Lookonchain pointed out that not all arbitrage trades are profitable, citing an example where someone incurred a $21 loss when buying 2,000 BUSD on BSC.
These 2 addresses can earn $1.2K ~ $12K through on-chain arbitrage every day.
— Lookonchain (@lookonchain) October 5, 2023
1/🧵
Here is the trading strategy. pic.twitter.com/N5ajrc9LBG
Despite the potential for profit, arbitrage can be challenging. These two addresses were able to execute arbitrage strategies 5 to 10 times per hour, highlighting the fast-paced nature of the market.
Ethereum (ETH) Price Action
ETH has maintained its value above $1,600, with a current price of $1,634, according to CoinMarketCap. While ETH saw some profit-taking, causing its price to drop from $1,736 to $1,611, it has since rebounded to $1,634.The Chaikin Money Flow (CMF) indicator, which measures accumulation or distribution of a cryptocurrency over time, is currently at -0.26, indicating more distribution than accumulation of ETH recently. However, this negative value could serve as an entry point for traders looking to go long on ETH, depending on the altcoin's strength.
The Relative Strength Index (RSI) has risen from 32.30 on October 5 to 45.10, suggesting a revival of buying momentum. If this momentum continues to increase, ETH could rise to $1,665 in the short term.
Please note that cryptocurrency trading involves risks, and traders should conduct their own research and analysis before making investment decisions.