TBH single axle yu wont have a problem, unless the back of the trailer is actually dragging on the road!
It is double axle where towball height is very critical!
that's the problem I think it will drag or very nearly drag with the height of the ball as it is now lol suppose only way to find out is to try it n then panic!
No brace, 2 inch reciever nas type
You may have insurance /safety issues with that "modification" of the nas/aus type reciever hitch , as its rating would be compromised by the length of drop and then subsequent lack of bracing to redress the balance. The trailer shown would most likely not be a problem , but at the 3500kg upper end its a different matter , I have seen distortion by such stresses on hitchs in Australia , and they were not as extreme as the one pictured . JMHO