Abraxas Capital's $353M Ethereum Short Gets Hedged With $32M Spot Buy

Abraxas Capital has been aggressively shorting Ethereum (ETH) in recent weeks, but now it's hedging its bets. The company has reduced its short position from $783 million to $353 million and bought $32.39 million worth of ETH on the spot market.

This move is likely a risk management strategy to mitigate potential losses if the price of Ethereum were to pump. Abraxas Capital's short positions are still elevated, with liquidation risk remaining high.

The spot buys may help reduce available supply and potentially lead to a breakout from the current range, according to some analysts. The Exchange Supply Ratio (ESR) has been declining, indicating more outflows than inflows, which could be positive for Ethereum's price.