TL;DR:
- Trend Research, led by Jack Yi, has permanently closed its $2.1 billion leveraged Ethereum long position.
- The trading firm recorded total losses of $869 million following the price drop toward the critical $1,750 level.
- Despite the leverage collapse, accumulating addresses now control 23% of Ether’s circulating supply.
The crypto sector witnessed a massive Ethereum liquidation in Asiaafter Trend Research, the firm led by Jack Yi, completely exited its ETH exposure. Data from Arkham reveals that the company executed its final position closure this Sunday, culminating a risk reduction process that intensified amid a lack of liquidity and extreme volatility.
This move was surprising given that, just days before the total shutdown, Jack Yi posted optimistic messages predicting Ether above $10,000. However, market pressure and the cost of leverage forced a brutal exit that resulted in million-dollar losses, demonstrating how even the largest players can succumb to fluctuations in the spot market.
On-chain Resilience: Whales Capitalize on Capitulation
Despite the forced institutional closure, the network’s fundamental indicators show a narrative of long-term strength and confidence. So-called “accumulating addresses”—which maintain balances exceeding 100 ETH without making withdrawals—now hold 27 million units, equivalent to nearly a quarter of the asset’s total capitalization.
Recent analysis from CryptoQuant suggests that the current price is in a historically attractive zone for spot capital entry. In fact, this is only the second time in Ethereum’s history that it has traded below the realized price of these accumulation wallets, a pattern that has previously preceded significant market recoveries.
In summary, while leveraged traders face painful liquidations, strategic investors continue to absorb the available supply within a multi-year timeframe. The market will now monitor whether this capitulation of long positions in Asia marks the ultimate floor necessary to initiate an upward trajectory driven by organic accumulation.
