As the crypto market continues to fall, Trend Research, one of the largest Ethereum whales, is on the verge of liquidating over $1.33 billion in assets.
The company holds over 618,000 Ethereum across six different addresses and is at risk of forced liquidation of its positions if the ETH price drops to the $1,781–$1,862 range.
Last week,
the price of Ethereum fell by about 26%, forcing whales to repay part of their loans and manage their leverage.
Trend Research also recently transferred 20,000 ETH, worth approximately $43.8 million, to the Binance exchange to mitigate risk and prevent forced liquidation.
This behavior shows that even large investors with a long-term bullish view have been forced to take risk reduction and leverage management measures under the pressure of short-term volatility.
Data shows that DeFi lending markets like Aave have so far managed to handle automated liquidations of over $140 million without systemic disruption. However, a continued Ethereum price decline could intensify selling pressure and impact the entire crypto market.
Investors should be vigilant and consider the risks of whale liquidation and deleveraging.
