Abraxas Capital Shorts $783M in ETH on Hyperliquid While Buying $173M Spot Hedge as Ethereum Targets $2.8K

Ethereum (ETH) was trading near $2,452 at press time, up 2.69% on the day and extending a weekly gain of 29%. After climbing to $2,546, the altcoin has cooled and now appears to be consolidating, hovering between $2,400 and $2,500. Against this shifting backdrop, retail and institutional participants have repositioned themselves strategically, while others have cashed out.

Abraxas Capital adds $173 million in ETH

Abraxas Capital — a UK-based digital-asset investment firm whose wallet activity is closely tracked by on-chain analytics platforms — has been aggressively shorting the market. Despite the recent price surge, the firm appears to be positioning for another pullback and, as a result, has built $783 million in short positions on Hyperliquid. Because Hyperliquid is a decentralized exchange for perpetual futures that settles trades on its own blockchain, positions of this size are publicly visible in real time, which is one reason large-fund positioning there draws close market attention. Aware of the risk that comes with such elevated leverage, Abraxas has also turned to the spot market to hedge.

According to on-chain analytics firm Lookonchain, Abraxas Capital purchased 73,872 ETH worth $173.17 million from Binance over the past four days. The move reflects a layered approach to risk management, with each side positioned to absorb losses on the other. Spot purchases of this scale typically raise demand, which in turn can absorb emerging market pressure.

Why Ethereum remains under pressure

As the market rebounded, holders who had been underwater significantly increased their spending. On Binance, netflow has remained positive for five consecutive days, while exchange netflow across all platforms has stayed positive for two consecutive days, currently sitting around 2.3k. Analysts generally watch for netflow flipping back to negative as an early sign that selling pressure is easing, since sustained outflows imply coins moving into self-custody rather than toward exchange order books.

Sustained positive netflow suggests that traders have been predominantly selling — a pattern that has often weakened market structure and led to poor price action. Continued rising exchange inflows have also markedly increased the ETH supply available for immediate sale. Binance's Exchange Supply Ratio — a metric that tracks the share of ETH's total supply held on the exchange — climbed to a monthly high of 0.0328, confirming that more traders are now selling ETH than buying. Under these conditions, Ethereum remains stretched.

What's next for ETH?

Sellers remain active on exchanges, but their pressure does not appear strong. Demand from major buyers such as Abraxas Capital is absorbing that pressure, leaving the market in a state of equilibrium — a dynamic that explains the recent sideways movement.

The broader market structure nonetheless leans bullish, with the uptrend still intact. The MACD continues along an upward trajectory and, at 149, has reached levels last seen in August 2025, signaling strong bullish momentum. The ADX trend indicator confirms this momentum, with +DI around 12 and -DI at -22, producing a spread of 35 — a reading commonly interpreted as evidence of a strengthening directional trend.

Taken together, these indicator readings suggest Ethereum is likely to break out of its current range and target $2,800. If selling persists instead, ETH could fail to hold $2,400 and fall to $2,200.

Recap

Over the past four days, Abraxas Capital purchased 73,872 ETH worth $173.17 million from Binance while maintaining $783 million in short positions on Hyperliquid. Ethereum continues to face selling pressure, but the prevailing trend leans bullish, with $2,800 cited as the next target.

Source: AMBCrypto via CryptoNews.net