Ethereum faces intensified selling pressure as major institutional holders liquidate holdings to meet loan obligations. Trend Research sold over $322 million worth of ETH in a single day but still holds $563 million at risk. With key liquidation zones tightening and other large whales also under pressure, market participants are watching to see if the market can absorb this surge in supply.
Ethereum’s price has declined over 60% since its all-time high in October, with January to February marking its worst drop. The asset recently fell below the $2,000 level, intensifying market concerns about further losses.
Investment firm Trend Research accelerated its Ethereum sales to meet loan repayments on February 6, 2026. The firm offloaded 170,033 ETH, valued at approximately $322.5 million, in just 10 hours.
Despite this massive sale, Trend Research still holds 293,121 ETH worth around $563 million. The firm’s liquidation prices have tightened to between $1,562 and $1,698 due to leveraged positions on the Aave protocol.
The firm had deposited large batches of ETH into Binance in recent days, using proceeds to pay down its Aave loans. This strategy added considerable sell-side pressure to the market, worsening downward momentum as the firm neared critical health factor thresholds.
Other large Ethereum holders also face liquidation risks. Joseph Lubin holds over 137,000 ETH with a liquidation price as low as $1,329, while an entity labeled “7 Siblings” holds nearly 287,000 ETH with liquidation at $1,029.
At the time of writing, Ethereum was trading at $1,930. The price sits close to a crucial $1,400 accumulation zone that bulls must defend.
Momentum indicators like the MACD and RSI revealed extreme weakness, with Ethereum in oversold conditions not seen since 2024. The market now faces the central question of whether it can absorb this massive selling pressure from whales.
