A notable Ethereum trader has realized a significant loss on a major short position while maintaining a substantial bearish bet on ETH’s price movement.
The trader liquidated a short position comprising 20,000 ETH at a loss of $840,000. This outcome followed a period where the same position had previously shown an unrealized profit exceeding $12.25 million prior to its closure.
Despite booking this loss, analysis of on-chain data shows the trader maintains an active short position of 30,000 ETH. This position holds an entry price of approximately $3,634 per ETH and faces potential liquidation if ETH price reaches $3,701. This continued large short reflects enduring cautious sentiment regarding ETH’s near-term price trajectory.
The market impact of such sizable positions warrants attention. The trader is reported to maintain a 75% historical success rate, potentially influencing market trends and trader confidence. Furthermore, the closure of short positions, especially those of this magnitude, can lead to increased buying pressure. This shift in demand dynamics may contribute to short-term price stability or increases for Ethereum.