Liquid Capital’s investment firm Trend Research has almost sold all of its Ethereum (ETH) after losing $747 million, according to data from Lookonchain. This shows how risky it can be to use high leverage in a market as volatile as crypto.
Trend Research started buying ETH heavily in late 2025 using borrowed money from Aave to increase its holdings.
By January 20, the firm owned over 650,000 ETH, making it one of the biggest Ethereum holders. But recent market drops caused big losses for their leveraged position.
ETH Market Downturn and Its Impact
Ethereum’s recent price drop forced Trend Research to reduce its holdings. ETH fell below $1,900, causing losses of 37% for the year and 55% over the past four months. Because of this, the firm returned 772,865 ETH to Binance at an average price of $2,326 per ETH.
Even after a short rebound above $2,000, ETH remains very volatile. This shows how risky it can be to hold large amounts of ETH with borrowed money.
Liquidation Details and Loan Repayments
Trend Research faced several liquidation points for its ETH holdings, ranging from $1,430 to $1,627, with an average around $1,640. To reduce risk, the firm sold over 411,000 ETH since February 1, totaling $4.22 billion, while also repaying $526 million in loans.
In just 10–12 hours, Trend Research sold between 170,000 and 216,000 ETH, keeping only about 21,300 ETH, worth around $44 million at current prices.
These actions show how difficult it is for large investors to manage losses in a falling ETH market, especially when borrowing to hold large positions.
Broader Market Implications
The large ETH sell-off added pressure to the crypto market, pushing Ethereum below key technical levels and causing about $2.5 billion in crypto liquidations.
Analysts say that the ETH still held by Trend Research and other big holders added more selling pressure, making prices drop further. Even other whales, like the “Hyperunit whale,” faced heavy losses.
This shows the risks of using high leverage in crypto, especially when the market is volatile due to factors like Federal Reserve policies or stock market moves. ETH is now testing support around $1,725, but if big holders sell more, it could fall below $1,600.
Trend Research’s actions are a clear reminder for investors to manage risks carefully and avoid holding too much in volatile markets.
