Whale Down! Trend Research Faces $686M Liquidation as $ETH Dips Below $2,00
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The Ethereum market witnessed a massive earthquake this week as the prominent trading firm Trend Research saw its aggressive "looped" long position unravel. As ETH crashed below the psychological $2,000 support level, the firm was hit by an estimated $686 million loss, marking one of the largest single-entity hits this year.
The Anatomy of the Crash
The Strategy: The firm utilized a high-risk DeFi "looping" strategy on Aave—depositing ETH as collateral to borrow stablecoins, which were then used to buy even more $ETH.
The Trigger: When ETH price plummeted to a low of $1,750, the collateral value shrank, breaching liquidation thresholds.
The Aftermath: To stabilize its books, the firm was forced to sell approximately 332,000 ETH (worth ~$700M) on Binance.
Market Sentiment
While the massive sell-off added significant downward pressure, the broader crypto infrastructure absorbed the shock. Some analysts suggest this "capitulation" of major players could signal a local bottom, but volatility remains high.
Watch the levels closely: ETH is currently struggling to reclaim the $2,100 zone.
