$68M short bet on Ether amid 11% price drop

An anonymous cryptocurrency trader has made a significant profit by shorting Ether (CRYPTO:ETH), accumulating nearly $68 million in unrealised gains as the cryptocurrency's price fell by almost 11% recently.

This risky bet was placed in anticipation of Ethereum's Pectra upgrade, which is expected to enhance the network's scalability and potentially reduce selling pressure over time.

The trader opened a 50x leveraged short position on February 1, when Ether was trading at $3,17

By March 5, the position had generated substantial profits, with the trader also earning $3.2 million in funding fees.

However, the position remains at risk of liquidation if Ether's price rises above $3,460.

Ethereum's recent price volatility is part of a broader trend in the crypto market, which has faced significant challenges, including the largest-ever hack at Bybit, resulting in a $1.4 billion loss.

This event, combined with macroeconomic factors, has contributed to Ether's price decline.

The upcoming Pectra upgrade could play a crucial role in Ethereum's future price movements.

"While Ethereum’s upcoming Pectra upgrade won’t necessarily trigger an instant price bump, it marks a significant step forward in the ongoing improvements to the Ethereum ecosystem," according to Gabriel Halm, a research analyst at IntoTheBlock.

The upgrade aims to boost Layer 2 scalability and reduce consensus overhead, potentially enhancing Ethereum's competitive edge.

Despite these developments, Ethereum's price remains under pressure, with a confirmed double top pattern suggesting a potential further correction.

Analysts like Nebraskangooner predict a possible drop to around $1,200, representing a 42% decline from current levels.

As Ethereum navigates these challenges, investors are closely watching the Pectra upgrade's progress.

The upgrade's success could be pivotal in stabilising Ether's price and setting the stage for future growth.

However, the current bearish sentiment and technical indicators suggest that any immediate price recovery may be challenging.

At the time of reporting, the Ethereum (ETH) price was $2,278.93.