Lookonchain analysts have drawn attention to a trader who was able to earn over $1.1 million in two days by betting on the fall of the Ethereum (ETH) exchange rate. He bet on the asset price to fall, using 50x leverage, when the cryptocurrency was trading at $3,428.
Recall that a short position is a trading strategy used by investors who expect the value of a certain asset to fall. Sometimes this method is also called short trading.
The trader opened the position on December 24 and two days later received an unrealized profit of $1.1 million. At the same time, the ETH rate fell from $3,428 to $3,359. Analysts noted that before the trader placed the bet, the asset value had been growing for two days in a row.
In addition to the direct income from the decline in the cryptocurrency rate, the trader received an additional profit of $680,000 due to the commission for funding his own position in the market. At this point, it is known that the investor sold at least 19,186 ETH worth $64.5 million.