Abraxas Capital Bets Big on Ethereum Breakout
Abraxas Capital has been aggressively shorting Ethereum (ETH) in recent weeks, but it's now hedging its $353.27 million worth of shorts with a $32.39 million buy.
The investment firm purchased 13,000 ETH on the spot to reduce the risk associated with its elevated leverage.
Abraxas Capital's aggressive shorting has been met with significant losses for high net worth investors who expected a major drop in Ethereum's price. However, with the prolonged sideways movement, $2.5k has become a stubborn resistance level.
The Exchange Supply Ratio (ESR) has been on a decline over the past week, indicating that supply that surged in early September has been absorbed. This could potentially lead to a breakout from the current range if spot buying continues to reduce available supply.