A prominent Ethereum whale has drawn attention with aggressive short positions, totaling $77.68 million. These actions spark public interest and suggest potential losses.
Aggressive Short Positions on ETH
The Ethereum whale began with a short position of 10,612.59 WETH, facing losses of $908,000. Overnight, the trader added another 5,000 ETH via Aave, striving for a more profitable trade. A small profit of $117,000 did not offset the overall risk.
Trader's Risks and Losses
Despite losses, the whale continued the strategy, borrowing another 5,000 ETH, bringing the current short position to 15,612 WETH. The risk of liquidation on Aave increased, with the health factor dropping to 1.45.
Implications and Future Risks
The whale increased its position to 20,612.13 ETH, equivalent to $77.68 million. Another address also added 1,001 ETH to the short position. The total position currently faces a floating loss of $2.84 million with high liquidation risk if ETH's price rises.
The Ethereum whale continues to attract interest with its investments. Significant risks and substantial losses create uncertainty regarding the market's future behavior.