Smart money repeatedly wins by shorting ETH and SOL, with $18.8 million profit revealing market risk signals

According to on-chain data tracked by Lookonchain, a smart money address starting with 0x152e recently initiated another large short position. This move has shown the market the true outlook of professional traders on mainstream cryptocurrencies. To date, this address has realized a total short profit of $18.8 million, making it a noteworthy market indicator.

On-Chain Tracking: Veteran Traders’ New Short Position

Based on the latest on-chain data, this smart money address has established a sizable new position. Specifically, they opened a 20x short contract for 21,838 ETH. At the current ETH price of $2,020, this position is worth approximately $44.1 million. Meanwhile, they also opened a 20x short position for 227,635 SOL. At SOL’s price of $84.99, this position is valued at about $19.35 million.

The combined size of these two contracts exceeds $63 million, clearly indicating the trader’s strong bearish outlook on the short-term market. The use of 20x leverage further demonstrates their confidence in risk management—such leverage means even a 2-3% price fluctuation can significantly impact the position.

Position Details and Considerations Behind High Leverage

Choosing ETH and SOL as short targets is not random. Both are among the most liquid and actively traded mainstream assets, making them more executable and stable in leveraged trading. Especially ETH, as the core asset of the Ethereum ecosystem, its price movements often reflect the overall risk appetite in the DeFi market.

While 20x leverage amplifies potential gains, it also demands high risk management skills from traders. The fact that this address dares to use such leverage indicates they likely have precise stop-loss strategies and a deep understanding of market rhythms. This approach is not uncommon among smart money, but typically only experienced players adopt it.

Historical Performance Comparison: From $7.2M to $18.8M in Profits

More notably, this address’s historical performance shows a trajectory of profit accumulation. Previously, through a series of short positions, they had already gained $7.2 million. After establishing this new short position, total profits jumped to $18.8 million, a 161% increase, demonstrating the trader’s accuracy in selecting assets and timing.

This consistent profitability is not luck but the result of long-term research into on-chain data, market cycles, and risk management. The leap from $7.2 million to $18.8 million highlights that this smart money has developed a relatively stable profit model in their short strategies.

Signals from Smart Money: What Is the Market Conveying?

When professional traders build large short positions, it often signals a warning of market risk. Every move by smart money is backed by logic—they wouldn’t establish such large shorts without underlying concerns about the short- or medium-term outlook.

In this case, shorting both ETH and SOL, two major cryptocurrencies, suggests that professional traders may see systemic risks in the entire crypto market. This could include macroeconomic factors, liquidity issues, on-chain anomalies, or overly optimistic market sentiment.

For retail investors, tracking these smart money moves is valuable, but blindly following is not advisable. It’s crucial to understand their logic and risk management strategies and make investment decisions aligned with your own risk tolerance. The $18.8 million in accumulated profits remind us that in crypto markets, professional risk management and understanding market cycles are often more critical than simply predicting the direction.