An anonymous cryptocurrency businessman accumulated nearly $ 68 million in uncertain income by shorting ether amid a recent price decline.
According to To —block the data from Hypurrscan, the entrepreneur opened a 50x leveraged short position when ether (Eth) traded at $ 3,176, in Feb.
Shorting It involves “borrowing” of the underlying cryptocurrency from a broker, sells it at the current price, and then re -buying it once the price falls – a strategy used by entrepreneurs to assess the price drop of a property.
Source: Hypurrscan
The trade is involved in the short -of -70,131 ETH short, which costs more than $ 155 million at current prices. In addition to the uncertain gains, the businessman also gained $ 3.2 million in funding fees. However, the position is at risk of extermination if the price of ether rises above $ 3,460.
ETH/USD, 1-month chart. Source: Cointelegraph
The beneficial short position comes in a period of increased volatility in the crypto market. The industry has recently suffered Largest hack, with a loss of $ 1.4 billionalongside the broader macroeconomic factors, which saw the price of ether dropping nearly 11% in the past week, cointelegraph markets Pro Data displays.
Related: Can Ether above recover above $ 3K after a massive $ 1.4B hack bybit?
Ethereum’s PECTRA upgrade can lay out a basis for the next ether price rally
The profitable short trade comes during a Kapana -exciting period for Ethereum’s development, such as PECTRA upgrade has lived In its final testnet on March 5, Cointelegraph reported.
Ethereum’s upgrading PECTRA upgrade The grounding may be laid out for The next ether rally By helping the long -term sale pressure, according to Gabriel Halm, a research analyst at Blockchain Intelligence Firm Intotloblock:
“While Ethereum’s upgrading PECTRA upgrading does not necessarily resist an instant price bump, it marked a significant step forward in continuous improvement in the Ethereum ecosystem.”
“By reducing the agreed overhead and strengthening the L2 scalability, it will expand its overall network capacity, thus enhancing its competitive edge,” the analyst added.
The Ethereum improvement proposal (EIP) -7251 will increase the staking of the validator from 32 ETH to 2,048 ETHs, making it easier for validators to compound their profits, which potentially reduce sales pressure over time.
Related: Memecoins: From society experiment to tools ‘Value Value Tools’
However, the upgrade was activated at the holesky testnet on February 24 and failed to finish. This may mean Ethereum developers will further delay the launch of Mainnet as they investigate issues.
Investors expect further information on the final date of implementation of Pectra Mainnet on March 6 during all major Ethereum developers.
https://www.youtube.com/watch?v=ndnryf5nlkw
Magazine: Ethereum L2S will be interoperable ‘within the months’: complete guide
