Recently, the wallet of Andrew Kang, co-founder of the cryptocurrency investment fund Mechanism Capital, has opened a Short position on Ethereum (ETH) with a total value of up to 16 million USD, according to on-chain data from Hypurrscan at the wallet address 0xBb876071A63Bc4D9bfCf46B012b4437Ea7Ff4281. The liquidation price of this position is 1,567 USD, indicating that Kang expects ETH to drop significantly in the near future.
Shortly before, Andrew Kang shared on the X (Twitter) platform that in recent months, he has not been closely monitoring the crypto market. However, he believes that the possibility of ETH dropping to the price range of 1,000–1,500 USD this year is very high.
The reason Kang provides is that the initial speculative phase has ended, and it is "irrational" for an asset without real growth or profit like Ethereum to have a market capitalization of nearly 200 billion USD at the current time. According to him, the argument about the bear market is gradually becoming clear, and the current valuation of ETH is unreasonable given the macro context and poor on-chain activity.
Notably, recently, a Hyperliquid whale has opened a Long position on ETH with a 20x leverage, with a total volume of 47,200 ETH – equivalent to approximately 69.15 million USD at the current market price. The actual amount used by the whale to margin this order is 4.5 million USDC.
Also Read: Hyperliquid Whale "Causing a Stir" Just Opened a 20x Long ETH Position Worth Nearly 70 Million USD
