One Ethereum (ETH-USD) trader has pocketed nearly $16 million by betting on Ether’s price drop, according to Hypurrscan. The trader opened a 50x leveraged short position when ETH was trading at $3,388, raking in millions as the price tumbled to $3,107 on February 2. Leveraged shorting lets traders profit by borrowing and selling assets high, then buying them back at lower prices. It’s risky business, but in this case, it paid off big.
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Ether Struggled Near $3K amid Broader Downtrend
Ether’s price has been on a six-week losing streak, falling more than 10% in the last 24 hours to hit a low of $2,326.97. Unfortunately, ETH did not manage to stay above the critical $3,000 level. Cointelegraph noted that a push beyond this level could trigger $1 billion in short liquidations.
Ethereum’s downtrend isn’t just market noise. According to Nansen’s Aurelie Barthere, competing blockchains are catching up fast in areas like apps, fees, and staking. Barthere believes stronger partnerships with the U.S. public and private sectors could help Ethereum regain momentum, but for now, Ether will need to break $3,400 to stage a meaningful rally.
At the time of writing, Ethereum is sitting at $2,581.81.
