Ethereum Under Billion Dollar Sell Pressure Amid Major Fund Liquidation Risk

Ethereum is currently contending with significant sell pressure, primarily driven by a large leveraged position orchestrated by Jack Yi's Trend Research. This position was established using Aave's lending protocol and peaked at nearly $958 million in borrowed stablecoins. However, as Ethereum's value continues to decline, this position has been unwinding due to a series of defensive sales.

On February 4, Trend Research made another deposit of 10,000 ETH, further indicating the challenges they face in managing this substantial investment. As the market fluctuates, the potential for an $862 million liquidation looms large, adding to the overall uncertainty surrounding Ethereum’s price movements.