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Ethereum remained near USD 2,480 as Abraxas Capital increased its spot holdings to hedge a USD 353.27 million ETH short position on Hyperliquid. Meanwhile, USD 2,500 continued to block further gains.
ETH fell about 0.45% on the daily chart while trading inside its established USD 2,400 to USD 2,500 range. The prolonged sideways move has strengthened USD 2,500 as resistance.
Abraxas Capital recently bought another 13,000 ETH worth about USD 32.39 million, according to Lookonchain. The purchase supported its hedge against 141,180 ETH in short positions. Those Hyperliquid shorts carried a value of about USD 353.27 million. The firm has used spot purchases to offset potential losses if Ethereum rises and pressures leveraged short positions.
Earlier, Abraxas Capital had built USD 783 million in Hyperliquid shorts while withdrawing 73,872 ETH from Binance. This spot position carried a value of about USD 173.17 million. Other trading desks had followed similar strategies. Fasanara Capital held 138,569 ETH in short positions, while Wintermute held 3,425 BTC in shorts during the late-August period.
Short traders still face pressure despite Ethereum's limited price movement. About USD 7.3 million in short positions faced liquidation during the previous 24 hours. A market-neutral structure combines long and short exposure to reduce directional risk. Still, spot and perpetual prices can separate sharply during volatile periods, creating basis risk.
Funding also affects the strategy. If funding rates turn negative against crowded short positions, traders can face ongoing costs even when their directional hedge remains intact.
Venue leverage adds another layer of exposure. Hyperliquid has recorded leveraged liquidations during 2026, including a roughly USD 100 million ETH short using 23 times leverage.
Also Read: Why Ethereum is Becoming a Corporate Treasury Asset in 2026
Ethereum's Exchange Supply Ratio declined during the past week and returned to levels last recorded in late August. The move suggests earlier September supply reached the market and found buyers.
A falling ratio points to stronger exchange outflows than inflows. Historically, lower available exchange supply has reduced immediate selling pressure when demand remains stable. Ethereum's momentum indicators also stayed positive during the consolidation period. The Momentum Shift indicator stood near 766, suggesting recent downside moves remained relatively shallow.
Therefore, ETH continued to trade within its established range, with USD 2,500 acting as resistance. Continued spot buying could further reduce available supply and open a path toward USD 2,800. At the same time, Bitcoin remained below USD 80,000 ahead of US inflation data. This broader market pause has kept Ethereum inside the narrow range where carry strategies can operate.
