Trend Research reduces its huge position in ETH: crypto price at risk amid massive liquidation

According to data provided by blockchain analyst Yu Jin through BlockBeats, the investment subsidiary 易理华, known as Trend Research, has executed an aggressive divestment strategy over the last four days of February 2025. This massive move has highlighted the extreme volatility faced by large Ethereum holders, especially when crypto prices experience significant fluctuations.

Unprecedented divestment: from $2,263 to critical levels

Between February 1 and 5, Trend Research sold approximately 188,500 ETH at an average price of $2,263, generating about $426 million in revenue. At the same time, the entity repaid $385 million in USDT to reduce its debt. This repressive move reflects a calculated strategy to decrease the systemic risk of its leveraged operations.

The current context is particularly delicate: just a year ago, ETH’s crypto price was around $2,263, but today it trades at approximately $1,980, according to the latest data. This price drop exerts tremendous pressure on funds holding large positions with multiple loans.

Risk hotspots: dangerously close liquidation levels

The most concerning scenario centers on current liquidation levels. Multiple ETH loan positions have liquidation prices ranging between $1,576 and $1,682, mainly concentrated around $1,640.

Trend Research still holds a substantial position of 463,000 ETH valued at approximately $998 million, with an average cost basis of $3,180. The accumulated losses amount to $647 million, broken down into $173 million in realized losses and $474 million in unrealized or floating losses. Leverage debt remains at $625 million.

Market implications: when crypto prices determine fates

The precariousness of these positions demonstrates how large crypto price movements can trigger cascading liquidations. If ETH were to fall significantly below $1,640, the fund would be forced to liquidate its positions, further amplifying downward pressure on the crypto price. This negative feedback mechanism is one of the most dangerous dynamics in highly leveraged derivatives markets.

Trend Research’s gradual position reduction strategy appears to be a prudent attempt to avoid a catastrophic collapse, although the safety margin remains critical.