Ethereum saw further selling pressure on February 07, as on-chain analysis showed that crypto investment firm Trend Research deposited a new supply of ETH into Binance, indicating further institutional selling in a weak market.
Trend Research has sold over 300,000 ETH in the past few weeks as Ethereum dipped below key technical levels. The selling pressure comes as the crypto market sees increased volatility, led by Bitcoin’s drop at around $60,000 level.
Trend Research’s $2 Billion Leveraged ETH Position
Trend Research had established a leveraged long position valued at $2 billion, which was funded through stablecoin borrowing on Aave with ETH as collateral. This was based on a forecast of a swift market recovery in the aftermath of Ethereum’s October dip below $4,000.
However, this rebound did not happen. As Bitcoin continued to lose value and Ethereum fell to its lowest point since April 2025, the company started to reduce its exposure to mitigate potential losses. According to Lookonchain’s post, Trend Research is currently at risk of facing unrealized losses of around $747 million.
According to Jack Yi, the founder of Trend Research, the sell-off is a risk management strategy and not a change in their long-term outlook. “We are making adjustments to control risk,” Yi explained, while still predicting that a bull market in crypto is to be expected in the long term.
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Whale Liquidation Risks Add Pressure to Ethereum Price
Beyond Trend Research, on-chain data shows rising stress among Ethereum’s largest holders. Joseph Lubin, along with multiple whale wallets, is nearing key liquidation thresholds. One entity known as “7 Siblings” holds nearly 287,000 ETH, with estimated liquidation levels around $1,029, while Lubin’s positions face risk below $1,329.
Ethereum is currently trading at $2,047.82, with a 24-hour trading volume of $68.70 billion, a market cap of $247.16 billion, and a market dominance of 10.48%. Over the past 24 hours, ETH has gained 6.62%, as per CoinMarketCap. The RSI and MACD momentum indicators are showing extreme oversold levels, last seen in 2024.
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