Ethereum News Today: Fed Hopes and ETF Inflows Drive $909K ETH Short Windfall

A trader secured a $909,000 profit by closing a $18.8 million short position on Ethereum (ETH) within an hour, according to on-chain data from Hyperliquid. The trade, executed at an average entry price of $2,991, highlights the volatile nature of crypto markets and the strategic opportunities available on decentralized exchanges. This success adds to the trader's cumulative earnings of $10.23 million on the platform. The move occurred amid a broader market context where Ethereum traded near $2,903 on November 25, supported by $96.67 million in ETF inflows and improved investor sentiment.

Ethereum's price action has been shaped by both technical and macroeconomic factors. The asset recently fell 23% from $2,652 to $2,820 over two weeks, underperforming Bitcoin and Solana, which saw similar 20% declines. However, ETF inflows provided a short-term floor (including a $92.6 million contribution from BlackRock's Ethereum ETF). Whale activity further signaled accumulation, with BitMine adding 69,822 ETH ($200 million) to its holdings, bringing its total to 3.63 million ETH, or 3% of Ethereum's supply.

The trader's profit aligns with Ethereum's technical indicators, which showed mixed signals. Meanwhile, the broader market faced selling pressure ahead of Hyperliquid's token unlocks, with the token trading in a descending wedge pattern. Analysts noted that a rebound above $33.72 for HYPE could reignite buying interest, though Ethereum's immediate support rested at $2,850.

The trade also occurred against a backdrop of shifting macroeconomic expectations. Federal Reserve rate cut probabilities surged from 30% to over 80% for the December meeting, influencing investor behavior. Meanwhile, Strive Asset Management's planned merger to create a public Bitcoin Treasury Company underscored growing institutional interest in crypto, with the combined firm aiming to raise $1 billion to accumulate Bitcoin.

Hyperliquid itself remains a focal point for market dynamics. The platform's upcoming launch of Hyperliquid Strategies, a decentralized autonomous treasury (DAT) led by former Barclays CEO Bob Diamond, could add $300 million in HYPE purchases, potentially stabilizing the token. This aligns with broader trends of institutional-grade strategies entering crypto markets, as seen with Strive's tax-free equity swaps and leveraged capital deployment plans.

The trader's one-hour ETH short exemplifies the high-stakes opportunities in crypto, where rapid price swings and sophisticated tools enable significant gains. However, it also underscores the risks inherent in leveraged positions, as evidenced by the trader's prior $1.6 million loss on a Bitcoin short. For investors, the trade highlights the interplay of technical analysis, macroeconomic shifts, and platform-specific catalysts in shaping short-term outcomes.