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According to an on-chain analytics platform, Ethereum bull Trend Research has sold almost all of its ETH in a capitulation move that has caught the attention of the market.
Before this time, Trend Research, a Hong Kong-based trading firm led by Liquid Capital founder Jack Yi, had spent recent months building a bullish (long) bet worth $2 billion on Ethereum by borrowing stablecoins from Aave, which were reportedly collateralized by Ethereum.
The tide turned as Ethereum started falling in mid-January; the sell-off intensified at January's close with ETH's price hitting a low of $1,742 on Feb. 6, last seen in March 2025.
Trend Research responded to the sell-off by liquidating its ETH, sending large amounts of ETH to Binance to repay its debt on AAVE.
According to Lookonchain, the firm has now deposited 772,865 ETH worth $1.8 billion back to Binance at $2,326. Trend Research had initially bought 792,532 ETH worth $2.59 billion from Binance at $3,267, but now has sold a large portion of this with only 21,301 ETH worth $43.92 million left. An estimated total loss of $747 million has resulted from the fallout of this trade.
Cryptocurrencies have been on shaky ground ever since the brutal sell-off in October that sapped market confidence. The selling increased this week in line with the unwinding of leveraged bets and broader market volatility.
Investors have continued to rotate out of risk-on assets, prompting significant declines for major cryptocurrencies, especially on a weekly basis.
At the time of writing, ETH was up 5.37% in the last 24 hours to $2,012 as the broader crypto market saw a rebound, but was down 24% weekly.
What's next for Ethereum price?
Ethereum saw a sharp rebound from a low of $1,742 on Feb. 6 as the daily RSI indicator reached deeply oversold levels.
The recovery reached a high of $2,117 on Saturday, where it is currently facing some sort of resistance. If Ethereum declines sharply from this level, it might confirm this level as resistance.
ETH might retrace toward $1,742, with the potential of now breaking beneath this support level increasing. The next support for ETH in this scenario will be $1,537. On the other hand, a break above $2,111 might cause sellers to lose strength, ETH might aim for $2,569 afterward.
Tomiwabold Olajide
Caroline Amosun
Godfrey Benjamin
Gamza Khanzadaev