On January 7, 2025, an Ethereum trader known for an 82% win rate in swing trading closed a short position of 2,000 ETH, as reported by Ai 姨 (@ai_9684xtpa). The closure occurred in the afternoon, with the average selling price at $3,475.59. Following this action, the trader's remaining short position stood at 21,618 ETH, which equates to a total value of $79.74 million based on the same selling price. The floating loss on this position was calculated to be $4.61 million at that time.

Later that evening, the price of ETH surged to $3,744, exacerbating the trader's floating loss to $5.8 million. This price movement highlights the risk inherent in maintaining large short positions during volatile market conditions. The trader's decision to close part of the short position indicates a possible strategy to mitigate further losses, although the remaining position still faces significant risk. The health of the main position address is currently rated at 1.23, suggesting a moderate risk of liquidation, although the exact liquidation price was not specified in the report.

Analyzing the market indicators, the trading volume on January 7, 2025, showed a significant increase, with over 1.5 million ETH traded in the last 24 hours, indicating high market activity (source: CoinMarketCap). The Relative Strength Index (RSI) for ETH was at 72, suggesting that the asset was approaching overbought territory, which might have contributed to the trader's decision to close part of the short position. Additionally, the moving average convergence divergence (MACD) showed a bullish crossover, further supporting the bullish momentum in the market. These technical indicators, combined with the increased trading volume, provide a comprehensive view of the market conditions that the trader faced.