A notable Ethereum (ETH) whale is making waves in the cryptocurrency market with a string of aggressive short positions, accumulating an astounding $77.68 million in short positions against ETH. The trader’s audacious moves, which have been meticulously documented on-chain and widely disseminated on social media, are sparking intrigue among market watchers as potential losses surge into the multimillion-dollar zone.
Yesterday, the whale’s opening short position of 10,612.59 Wrapped ETH (WETH) was already in the red, grappling with a volatile loss of $908,000. Unfazed, the trader compounded the situation overnight by opening another short position of 5,000 ETH successively. The initial upload was executed via Aave, a decentralized lending platform, with the whale trading for an average of $3,459.38. A subsequent buyback at $3,436 allowed for a modest profit of $117,000 – a mere drop in the ocean when juxtaposed with the total risk.
A few hours later, the whale maintained its assertive strategy by borrowing an additional 5,000 ETH at an average price of $3,501.79. This prompted the total short position to balloon to 15,612 WETH. At this juncture, the trader’s health factor, a gauge employed by Aave to evaluate liquidation risk, clocked in at 1.45, forecasting liquidation if ETH hit $3,861.77.
However, the whale’s risk-taking did not end there. In the wake of social media updates detailing the transactions, the identified wallet address (0x6c2…a4777) amplified its short position to 20,612.13 ETH. To add insult to injury, another address (0x2c8…22d86) opened a 1,001 ETH short position, ostensibly in tandem with the trader.
The aggregate short position is currently valued at 21,613.13 ETH, equivalent to $77.68 million at the time of this writing. Given an average ask price of $3,458 and the current market price trading over that benchmark, the trader is presently grappling with a considerable floating loss of $2.84 million. The health factor has also plunged perilously low to 1.27, signaling a high liquidation risk should ETH undergo a substantial price surge.
While the actions of this whale are undoubtedly jaw-dropping, they serve as a stark reminder of the high-risk, high-reward nature of cryptocurrency trading. It also underscores the importance of conducting thorough research and due diligence before engaging in such risky trading strategies.
