Recently, famous crypto trader AguilaTrades, a popular, mysterious crypto whale, returned with another large position in Ethereum. This time, AguilaTrades has taken a short position with 25x leverage, amounting to $84 million and comprising 20,000 ETH.
This action coincides with a time when Ethereum has a high bullish momentum, when it has gained 22% in one week. The current price of ETH is $4,202, having surpassed $4,300 earlier today.
Betting Against a Bullish Market
The most recent market sentiment toward Ethereum has been highly bullish. Ethereum has been outpacing Bitcoin, thanks to the investor sentiment in the altcoin market, expanding adoption of Layer-2 technology, and speculation surrounding a possible upcoming altseason.
Shorting the levels suggests that AguilaTrades is either anticipating a correction following the price surge or attempting to capitalize on potential overbought levels.
Ethereum RSI on the daily chart is getting into overheated regions; some traders would view that as an indicator of a pullback.
High Leverage, High Risk by AguilaTrades
With a huge 25x leverage, the slightest price fluctuation can make massive profits, or rather, massive losses.
AguilaTrades is not alien to high-stakes trading. His positions have included tens of millions of dollars’ worth of crypto holdings and are making waves in the crypto community, and this can end in major wins as well as other documented losses.
The immense magnitude of his recent trade also dictates that the players in the market will observe keenly any changes in the pattern of Ethereum.
In the meantime, Ethereum is still on a healthy uptrend, yet with such a high-profile whale positioning so heavily against it, the next few days may present volatility, as bulls and bears may take profits.
