Trader Loses $2.71M, Returns to Shorting ETH

Coin WorldSunday, May 18, 2025 9:05 pm ET
1min read

On May 19, a prominent trader, known for their aggressive short positions on Ethereum (ETH), acknowledged a significant loss and returned to shorting ETH. The trader, who had previously shorted ETH with 25x leverage, closed their short position to go long on Bitcoin (BTC) but was once again on the verge of liquidation. After holding the position for 45 minutes, the trader cut losses and stopped out, losing an additional $175,000. This brought their initial capital of $2.96 million down to $250,000 after two more days of trading.

Following the closure of the BTC long position, the trader reopened a short position on ETH with 25x leverage. The new short position involved 2,636 ETH at a price of $2,444, with a liquidation price set at $2,480. This move indicates the trader's continued confidence in the downward trajectory of ETH, despite the recent losses.

The trader's actions highlight the volatile nature of the cryptocurrency market and the risks associated with high-leverage trading. The decision to return to shorting ETH after significant losses suggests a strategic shift or a belief in the asset's continued decline. The liquidation price of $2,480 provides a clear threshold for the trader's risk management, indicating a cautious approach to re-entering the market.

This event underscores the importance of risk management in high-stakes trading environments. The trader's ability to cut losses and re-evaluate their strategy demonstrates a level of discipline that is crucial for navigating the unpredictable cryptocurrency market. The continued shorting of ETH, despite previous setbacks, reflects a persistent bearish outlook on the asset's future performance.