A short position of 240 million USD was closed by 90% within 20 hours, and the short-selling giant Abraxas Capital is quietly retreating from the ETH market, while the price remains deadlocked between 2880 and 3000 USD.
During the most panicked times in the market, it's not the short sellers who are showing their teeth, but rather when they start to pull back and you don't know what they have seen. In the past 20 hours, a whale address marked as Abraxas Capital closed a short position of approximately 9.7 million USD in ETH near 2932 USD.
As of now, this once short-selling giant with a position of up to 267 million USD has closed positions totaling about 240 million USD, with the position size shrinking by 90% month-on-month.
Shorts take profits
During the trading session early Tuesday, ETH once again fell below the psychological barrier of $3000, and the market seemed to fall back into panic. As of the time of writing, ETH is priced at $2939, down over 5% in the last 24 hours.
The real story is not in the price, but in those unseen corners.
In the past two days, large leveraged positions have encountered consecutive liquidations, with well-known investor Huang Licheng's 25x ETH long position being liquidated down to only 28% of its position. But just as the bulls were suffering losses, the shorts began to quietly retreat.
The short position liquidation actions by Abraxas Capital are not isolated incidents. Data monitoring shows that this institution has made a profit of $13.74 million through this round of short operations, with an unrealized profit of $4.69 million and a profit rate of 176%.
What does this mean? The short whales believe that the current price already reflects sufficient pessimistic expectations and choose to take profits.
The core logic of today's operations
Lao Luo's view is clear: the short trend has slowed down, but the bullish trend has not yet been established.
Abraxas Capital's retreat is an important signal, indicating that professional shorts believe the current price is approaching a short-term bottom. However, the flow of funds after their liquidation is worth noting, as some funds have been monitored to be used to increase holdings of HYPE spot.
This means that shorts may be changing battlefields, rather than being fully bullish.
From a technical perspective, ETH is currently in an extremely compressed trading range. Analysts point out that ETH has confirmed a bearish flag pattern on the daily chart, and if it falls below the support level of $2800, it may target $2300.
But it must also be noted that there is strong support near $2880, with data showing that 5.8 million ETH were purchased around this price level recently.
Today's key is to observe the price testing the psychological barrier of $3000. ETH needs to re-establish above $3000 and demonstrate sustained buying strength to confirm the formation of a short-term bottom.
Key position
The watershed: $3000. This is the dividing line between bulls and bears; standing firm means the bullish counterattack begins, while losing it means the bears continue to dominate.
First support: $2880. Falling below this level will trigger $849 million in long liquidations, potentially causing a rapid decline.
Second support: $2800. Technical analysis shows there is support for purchase of 5.8 million ETH here.
First pressure: $3000-$3050 range. Breaking through here will face $659 million in short liquidations.
Second pressure: $3150. This is the position that has been repeatedly blocked in recent rebounds.
The fog before the appearance of a certain market trend
The ETH market is at a delicate turning point. The giant short sellers are starting to retreat, but the bullish power has not yet gathered; institutions are optimistic in the long term, but the short-term funding situation remains tight.
The price is still oscillating between the support at $2880 and the resistance at $3000, with alarms flashing on the exchange's data screen for imminent long and short liquidations.
The next direction of the market may be hidden in our patience at this moment.
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