Ethereum remained near USD 2,480 on Wednesday as Abraxas Capital increased its spot holdings to hedge a USD 353.27 million ETH short position on Hyperliquid. The USD 2,500 level continues to act as a firm resistance cap, blocking any meaningful upside momentum.
ETH fell about 0.45% on the daily chart, trading inside its established USD 2,400 to USD 2,500 range. The prolonged sideways move has reinforced USD 2,500 as a key barrier for traders.
Abraxas Capital Expands Its Ethereum Hedge
According to Lookonchain, Abraxas Capital recently purchased another 13,000 ETH worth approximately USD 32.39 million. This acquisition supports its hedge against 141,180 ETH in short positions, which carry a value of about USD 353.27 million. The firm uses spot purchases to offset potential losses should Ethereum rise and pressure leveraged short positions.
Earlier, Abraxas Capital had built USD 783 million in Hyperliquid shorts while withdrawing 73,872 ETH from Binance. That spot position was valued at roughly USD 173.17 million. Other trading desks 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 Liquidations Keep Risk Elevated
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, but 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.
Falling Exchange Supply Supports ETH Range
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 reduces 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. 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.