- Aggressive shorting strategies like AguilaTrades’ 15x leverage on ETH can result in large losses if the market moves unfavorably.
- With significant liquidation points near $4,258 on Binance, Ethereum traders are at risk of amplified price volatility and cascading liquidations.
- As Ethereum’s price rises, the funding rates across exchanges like Binance and Bybit show an increase in long positions, signaling market optimism.
AguilaTrades, known for making high-stakes moves in the cryptocurrency market, has once again shorted Ethereum (ETH) with a 15x leverage.
With a current stake of 30,001 ETH worth $128.45 million, the liquidation price is $4,383.66, according to Lookonchain. That being said, AguilaTrades has encountered unstable circumstances previously. The trader lost $1.86 million in under 10 minutes after closing a short position of 26,187 ETH ($112.35 million) in a prior transaction.
Short Positions and Leverage Dynamics
AguilaTrades’ current strategy involves placing a limit short order of 29,000 ETH between $4,200 and $4,240. This move comes at a time when significant liquidation points are emerging in the ETH market.
According to crypto analytics platform Coinglass, liquidation points around $4,258 on Binance could trigger substantial liquidations. Notably, there is a sharp drop in short leverage, while long leverage is steadily increasing, signaling a potential surge in market volatility.
Source: Coinglass
The probability of a liquidation rises as Ethereum gets closer to $4,263, particularly for traders who are employing leverage. A series of liquidations could result from the high concentrations of short liquidation leverage in this range, which would increase market pressure and magnify price swings.
Key Market Insights
Additional information on market trends may be found in the Ethereum financing rate chart, which displays data from May to August 2025. Funding rates typically turn positive when ETH’s price increases, indicating more long holdings in the market.
Source: Coinglass
While some exchanges, like Gate and CoinEx, exhibit higher volatility, others, like Binance and Bybit, have a more steady positive funding rate. These platform-to-platform variances show how traders need to adjust to shifting market conditions in order to make wise choices.
