Abraxas Capital Bets Big on Spot Market to Hedge Ethereum Shorts

Abraxas Capital has been aggressively shorting Ethereum (ETH), but to mitigate its losses, it's hedging its bets by buying ETH on the spot market. According to Lookonchain, Abraxas Capital purchased 13,000 ETH worth $32.39 million to hedge its $353.27 million in short positions.

The purchase aims to reduce the risk associated with elevated leverage and leaves Abraxas Capital safe in case the price pumps and shorts are forced out of the market.

Ethereum's stagnant price, hovering between $2.4k and $2.5k, has led to a decline in exchange supply, signaling potential for a breakout from this range, with $2.8k as a target.