Key Points:
- Crypto trader AguilaTrades has just closed a massive ETH short at an $8 million loss before going long.
- His net losses are now more than $27 million despite past trading profits.
- ETH faces resistance around $4,000, while volatility has been sky-high lately.
Crypto trader AguilaTrades is again making waves after a few more erratic trades. AguilaTrades, known for his massive high-leverage plays, recently closed a huge Ethereum short with an $8 million loss.
Soon after this, he then immediately flipped long on the same asset. All before closing it all and depositing 5.28M $USDC to Hyperliquid. This turnaround comes as Ethereum flirts with the $4,000 resistance level. All eyes remain glued to AguilaTrades’ next move.
From Short to Long
AguilaTrades’ reversal was first flagged by Lookonchain on July 20. According to the blockchain analytics service, Aguila closed two massive short positions simultaneously. These included 6,832 ETH worth $25.15 million and 1,134 BTC worth $134 million.
Together, these trades locked in a $1.1 million loss. However, the real blow came from his remaining short. He had a final position of 50,000 ETH, worth about $186 million. It was bleeding badly and showing an unrealized loss of over $7 million.
Soon after this ordeal, AguilaTrades closed it all with a confirmed $8 million loss: Then came the shocker. Rather than retreat, Aguila flipped bullish and went long on ETH, betting the price would rise soon.
Ethereum in Focus as Sentiment Shifts
Ethereum had recently rebounded from a dip and bounced back toward $3,850 before settling around $3,650. The 24-hour trading volume so far has been more than $53 billion.
Despite the cryptocurrency’s 2% daily price drop, it showed strong market activity. Ethereum has been up nearly 24% in the past week despite this. This is leading many traders to consider the possibility of a sustained rally.his
Aguila’s sudden long move appears to work well with this sentiment shift. However, analysts warn that it could be a high-risk attempt to recover his rising losses.
Net Losses Of More Than $27 Million
AguilaTrades isn’t new to risky trades or massive swings. Despite this, his trading journey has been anything but stable. According to data from HyperLiquid, AguilaTrades and James Wynn have gained notoriety for placing large, highly leveraged bets.
These decisions have resulted in wild fluctuations in his portfolio, with the trader recently sitting on $35 million in losses. He recovered it all, leading to $3 million in current profit.
The trader has racked up net losses totaling $27 million. He recently closed a trade with a $3 million loss. Despite the setback, he deposited another $5.28 million USDC into Hyperliquid.
So far, his story is quickly becoming a cautionary tale for investors trading with massively leveraged positions.
Liquidation Levels Loom as ETH Hangs
Aguila’s long position wasn’t just a gamble. It came with substantial liquidation risks. Lookonchain reported that the new ETH long was on a $3 million loss, with the liquidation level at $3,654.77.
Ethereum is currently hovering around this price level. This means that even a slight dip could trigger liquidations across the rest of the market.
Analysts have also noted that the $3,600–$3,700 range has become a battleground. It is now filled with leveraged long positions. If Ethereum were to dip firmly below this zone, a cascade of selloffs could result, alongside massive liquidations.
High Risk Trades, Risks and Rewards
AguilaTrades’ story is a double-edged sword regarding crypto trading with leverage. His entries have earned him both admiration and concern from crypto market participants.
While some see him as a fearless trader, others see a cautionary tale in his relentless risk-taking. Overall, whether AguilaTrades hits a stroke of luck soon remains to be seen.