An anonymous cryptocurrency trader has amassed nearly $68 million in unrealized profit through a leveraged short position on Ether, a result of its recent 11% price decline. Blockchain data from Hypurrscan indicates that the trader initiated a 50x leveraged short position when Ether was valued at $3,176. Presently, the position hovers around $68 million in unrealized gains.
Short selling involves borrowing the underlying cryptocurrency from a broker, selling it at the given market price, and then buying it back after the price decreases. This trade involved shorting 70,131 Ether, with a market value surpassing $155 million at current prices. Alongside the unrealized profits, the trader has also earned $3.2 million in funding fees. Nonetheless, the position is exposed to the threat of liquidation if Ether’s price exceeds $3,460.
This profitable short emerged amid significant volatility in the crypto market, exacerbated by the sector’s largest hack involving a $1.4 billion loss at Bybit. Macroeconomic factors contributed to Ether’s nearly 11% price drop over the past week, as reported by Cointelegraph Markets Pro.
This development occurs during a pivotal phase for Ethereum as the Pectra upgrade has been deployed on its final testnet. The upgrade, however, encountered issues on the Holesky testnet on February 24, leading to incomplete finalization. Consequently, developers might postpone the mainnet launch while they address these problems. Investors anticipate an update on the Pectra mainnet’s implementation date during Ethereum’s All Core Developers call on March 6.
The Pectra upgrade is expected to enhance Ethereum’s long-term prospects, as highlighted by Gabriel Halm from blockchain intelligence firm IntoTheBlock. By increasing the validator staking limit and easing consensus overhead, it aims to bolster the network’s scalability and competitive position, potentially reducing long-term selling pressure.
