- Trend Research sells ETH, incurring $747 million loss amid volatility.
- Ethereum’s price drops sharply, firm liquidates holdings to cover debt.
- ETH rebounds slightly, faces resistance at $2,100 after massive sell-off.
A significant shift has occurred in the cryptocurrency market as Trend Research, a Hong Kong-based trading firm led by Jack Yi of Liquid Capital, has sold off the majority of its Ethereum holdings. This move has captured attention, especially given the firm’s previous strategy of betting heavily on Ethereum. Over recent months, Trend Research had built a bullish position worth $2 billion by borrowing stablecoins from Aave and collateralizing them with Ethereum. However, this optimism quickly faded as Ethereum’s price began to decline in mid-January, eventually culminating in a sharp drop.
As Ethereum’s price hit a low of $1,742 on February 6, a level not seen since March 2025, Trend Research acted swiftly to liquidate its ETH holdings. The firm transferred significant amounts of Ethereum to Binance to repay its debt on Aave. Reports indicate that Trend Research has deposited a total of 772,865 ETH, valued at approximately $1.8 billion, to Binance at an average price of $2,326. This is in stark contrast to the original purchase of 792,532 ETH for $2.59 billion, bought at $3,267 per coin. With only 21,301 ETH remaining, valued at $43.92 million, the firm has faced an estimated loss of $747 million.
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Impact of Trend Research’s Liquidation on Market Sentiment
The liquidation by Trend Research is a clear indication of the volatility and uncertainty that continues to plague the cryptocurrency market. The firm’s move has become emblematic of the broader challenges faced by crypto investors, particularly those holding leveraged positions. This wave of selling coincides with broader market trends, particularly the unwinding of leveraged bets that has created significant downward pressure on asset prices.
Despite the bearish sentiment in the market, Ethereum has seen a slight rebound in recent days, rising by 5.37% in the last 24 hours to a price of $2,012. Nevertheless, it is still down by 24% on the weekly chart, showing the market’s struggle to regain its footing. The cryptocurrency is facing key resistance around the $2,100 mark. If Ethereum fails to break through this level, it may face further downside risks, possibly dropping to $1,742, which would test its support levels. A successful breakout above $2,111, however, could give ETH a chance to rally toward $2,569, providing some hope for a recovery.
The market will closely watch Ethereum’s movements in the coming weeks, as Trend Research’s actions have further underscored the fragility of the current crypto market.
Also Read: XRP Soars 15% in 48 Hours as Burn Rate Surges 67%—Massive Price Surge Ahead!
