Ethereum (ETH) has been trading in a narrow range between $2,400 and $2,500, with $2,500 acting as a resistance level. At the time of reporting, ETH was priced around $2,480, down 0.45% on the daily chart.
Abraxas Capital’s hedging activity
According to data from Lookonchain, Abraxas Capital purchased 13,000 ETH valued at $32.39 million. The purchase is intended to hedge a short position of 141,180 ETH, valued at $353.27 million, on the Hyperliquid platform.
Two weeks earlier, reports indicated that Abraxas Capital had built short positions worth $783 million on Hyperliquid and bought $173 million of ETH on the spot market as an initial hedge. Since then, the size of the short position has been reduced, but liquidation risk remains high. Over the past 24 hours, $7.3 million of short positions were liquidated.
Market context
Ethereum’s Exchange Supply Ratio (ESR) has declined over the past week, returning to levels seen in late August. A lower ESR suggests that outflows have exceeded inflows, a condition that has historically supported price gains.
Momentum indicators for ETH have remained positive during the consolidation period, with the Momentum Shift indicator around 766, indicating that recent lows are not deep.
Outlook
Given the current market conditions, ETH is expected to continue trading sideways with $2,500 as a key resistance level. Continued spot buying that reduces available supply could create conditions for a breakout toward $2,800.
