In recent days, Ethereum's price has shown considerable growth, surpassing the $4,300 mark. However, despite the positive trend, some market participants are facing losses.
Ethereum Price Surge
Over the past few days, Ethereum's price has risen significantly and reached $4,300 for the first time in years early Sunday morning (CET). However, this increase was short-lived, as the price subsequently pulled back to the $4,200–$4,250 range. Nevertheless, the overall trend remains bullish, with little resistance left as it approaches new all-time highs.
Major Investor Struggles
Currently, one major investor is attempting to maintain a substantial short position on Ethereum. They opened a $66.4M short position using 20x leverage, which makes them vulnerable to price fluctuations in ETH. As of now, this position is sitting on a floating loss of $19.9M.
Leverage Strategy
To avoid liquidation, the investor has been continuously depositing large amounts of USDC into their account. Over the past two days, they have sent in approximately $9.5M from an Arbitrum wallet, which helps to increase margin and provides them additional leeway. Using leverage allows investors to temporarily maintain their positions while hoping for a favorable market shift.
Thus, despite Ethereum's overall price increase, the major investor is facing serious challenges in trying to sustain their position. Nevertheless, the market's situation remains dynamic, and future developments will depend on further price changes for Ethereum.
