Ethereum has recently faced significant downward pressure, experiencing a substantial price decline that has pushed it below the $2,000 mark. This market volatility is largely attributed to major holders liquidating vast amounts of their ETH, raising concerns about the market's ability to absorb this selling pressure and avoid further losses.
Major Players Drive Sell-Offs
A key contributor to the recent market turbulence is Trend Research, which recently accelerated its Ethereum sales to meet future loan repayment obligations. The firm offloaded a staggering 170,033 ETH, valued at $322.5 million, in a mere 10 hours. This strategic move, involving depositing large ETH batches into Binance to pay down Aave loans, generated considerable sell-side pressure. Despite this massive sale, Trend Research still holds 293,121 ETH ($563 million), with their liquidation prices now tightened between $1,562 and $1,698 due to their leveraged positions. The risk remains that further price drops could force them to sell more, exacerbating market volatility.
Broader Whale Vulnerability and Critical Levels
The pressure isn't limited to one entity; several other major Ethereum holders, often referred to as "whales," are also dangerously close to their liquidation zones. Prominent figures like Joseph Lubin, holding over 137,000 ETH, face potential liquidation around $1,329, while another entity, "7 Siblings," with nearly 287,000 ETH, has liquidation levels as low as $1,029. Should Ethereum's price continue to fall, these massive positions could trigger forced selling, creating a cascading effect that intensifies the market's downward trajectory. With Ethereum currently trading around $1,930, it hovers precariously close to the crucial $1,400 accumulation zone. Momentum indicators, such as the MACD and RSI, signal extreme weakness and oversold conditions, underscoring the urgency for bulls to defend this level against the persistent selling pressure. The core question remains whether the market can effectively absorb these massive sales to prevent a deeper correction.
