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Ethereum is going through one of its most aggressive sell-off periods in recent memory as funds, ecosystem insiders and major holders all try to limit their exposure. As volatility increases and ETH moves closer to the psychologically crucial $2,000 zone, on-chain data now reveals a wave of forced selling and liquidation avoidance from some of the largest market players.
Large holders start selling
The founder of Aave, Stani Kulechov, sent out the most recent signal just hours ago when he sold 4,503 ETH for about $8.36 million at about $1,857. These actions by prominent ecosystem players are rarely ignored and frequently heighten market anxieties, particularly in times of unstable markets.
Large amounts of ETH are still being sold by Trend Research to exchanges at the moment. In an effort to sell and lessen its exposure to debt, the fund recently sent Binance 20,000 Ethereum, or $38.6 million. With $343.77 million in debt and liquidation thresholds ranging from $1,509 to $1,800, Trend Research currently has 416,149 ETH on Aave valued at almost $791 million.
That is not the end of the pressure. Additional reports indicate that wallets may be connected to Konstantin Lomashuk, a well-known ETH user and cofounder of P2P.org and cyber. His fund transferred 12,458 stETH and 2,566 ETH, or about $29 million, to Wintermute. This is usually a sign that market sales or liquidity operations are about to begin.
Simultaneously, Lomashuk reportedly went long ETH four days ago in an attempt to catch the market bottom but was fully liquidated six hours ago, losing more than $4 million as the price continued to decline. The attempt demonstrates how even seasoned market players miscalculated downside risk.
ETH pushed on Binance
Additionally Trend Research transferred 203,000 ETH valued at $457 million to Binance overall. The company currently owns over 463,000 ETH, and its total losses are estimated to be over $855 million. Additionally, it has been reported that Vitalik Buterin has been selling Ethereum, which has put additional psychological pressure on the market.
As leveraged positions, funds and whales all unwind at the same time, Ethereum appears to be going through a coordinated exodus. The upcoming weeks are crucial for the asset's long-term trajectory
Arman Shirinyan
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