The first report published by the Hypurrscan platform included a remarkable gain by an Ethereum investor. According to the report, an anonymous investor made a profit of $1.1 million from an ETH short position in just two days. Here are the details…
Ethereum Gained 50x With Short Position$ETH
An anonymous cryptocurrency investor made over $1.1 million in profits in just two days thanks to a short position on Ethereum (ETH) that he opened with 50x leverage. This strategy involves the investor borrowing ETH from a broker, selling it at the current price, waiting for the price to drop, and buying it back at a lower price. This method is usually preferred by investors who predict that cryptocurrency prices will fall.
According to blockchain analytics platform Hypurrscan, the investor opened this short position when the ETH price was around $3,428. The investor short-sold a total of 19,186 ETH, and the transaction value exceeded $64.5 million. This transaction took place on December 26 at 10:56. The investor not only made a profit of $1.1 million, but also earned $680,000 in funding fees on the short position. However, the price needed to reach $4,750 for the position to be liquidated. The position opened on December 24 closed with a loss of $1.2 million on the first day, but started to show a profit as of the second day.
Leveraged trading carries significant risks, while potentially increasing profits, and can result in the loss of all invested capital. As of 2024, an investor had lost more than $161,000 in a single trade when their leveraged position became liquid. The same year also saw significant developments, such as Bitcoin breaking the historic $100,000 level. 2024 was also the year of investors making millions of dollars with small investments. For example, an investor made $52 million in profits from the Pepe (PEPE) meme coin with just $27 invested, but this profit required the investor to patiently hold the position for 600 days. While leveraged trading and meme token strategies can yield big profits, they also come with significant risks.
Ethereum lost 16.48% in value last week. However, market indicators are giving positive signals for ETH to rise again to $3,300. ETH fell to $3,095 after a major drop from $4,109. Ethereum’s financing rate, which has increased in recent weeks, has now retreated to healthier levels, creating a suitable ground for a positive price movement. ETH’s supply-demand balance also points to recovery. Ethereum’s stock-flow ratio has increased as large investors increase their ETH accumulation, and the MVRV score shows that ETH’s low price is attractive to long-term investors. All these indicators indicate that ETH may enter a recovery process and that there may be a price increase in the coming weeks.