Skip to content
- Trend Research liquidates $1.8 billion in ETH amidst market crash.
- Ethereum’s price dip causes massive loss for Hong Kong trading firm.
- Ethereum’s market struggles as Trend Research exits bullish bet.
Ethereum’s market has seen a significant shift in recent days following a bold move by Trend Research, a prominent Hong Kong-based trading firm. The Liquid Capital manufacturing company, headed by Jack Yi, had taken months to create a huge bullish stance on Ethereum. The company took out stablecoins on Aave on the basis of Ethereum, accumulating almost $2 billion of them. But this grandiose bet soon collapsed as the Ethereum price started to fall, and Trend Research had to incur a lot of losses.
Ethereum plummeted with a steep decline in late January to as low as $1,742 on February 6, leading the trading company to initiate a staggering sell-off. This crash was the last trigger point for Trend Research to dump its Ethereum stocks. To settle its debt with Aave, the company transferred a considerable part of its ETH to Binance. At its height, Trend Research was holding 792,532 ETH, which was valued at the time of acquisition to the tune of more than 2.5 billion. The company has, however, disposed of the majority of this holding, leaving it with 21,301 ETH, which has a value of around 43.92 million.
Also Read: BitMine Acquires $9.9B in Ethereum, Pushing Toward 5% of Total Supply!
This fire-sale approach has cost the company an estimated loss of $747 million. This has raised the eyebrows of the broader cryptocurrency market, especially considering that it is coming after a bigger trend of market volatility and the unwinding of leveraged positions. The crashout of the ETH liquidation by Trend Research might mark the beginning of a period of over-optimistic speculation in Ethereum, at least in the near future.
Ethereum’s Market Reaction and Support Levels
The consequences of this sell-off remain open, but there have been some positive signs in the market of Ethereum. The cryptocurrency has been able to recover after it hit a low of 1,742 on February 6 and hit a high of 2,117. But, now ETH is being met with opposition on this level, and traders are eagerly awaiting the likelihood of whether the price is going to fall again or will keep on surging higher.
In case the Ethereum price cannot overcome the resistance point of 2111, one might see it falling further to 1742, and hence, ETH might go below it. In case it happens, the second significant support is at approximately the $1,537 level. Conversely, when Ethereum manages to break out of $2,111, it would have enough pressure to move the price back to $2,569.
Until now, the market continues to grapple with the aftermath of high sell-offs in cryptocurrencies and the overall market uncertainty. As leverage positions are unwound, Ethereum and other cryptocurrencies are riding on a rollercoaster ride, and traders are fearful of the next direction the market will take.
Also Read: Ripple Prime Integrates Hyperliquid, Expanding Access to DeFi for Institutional Clients
