Ethereum Dips Under $2,000 as Whale Liquidations Fuel Selling
Ethereum’s price has faced significant pressure recently, with major players such as Trend Research moving quickly to liquidate their ETH holdings. ETH has indeed experienced a significant drop of over 60% since reaching its all-time high in October, with the period from January to February being its most severe decline. Ethereum dipped below the $2,000 mark, raising significant concerns within the market. With liquidation zones tightening, the pressing question is whether the market can handle the influx of selling or if additional losses are looming ahead. On February 6, 2026, Trend Research ramped up its Ethereum sales to fulfill loan obligations, liquidating 170,033 ETH for a total of $322.5 million in a mere 10 hours. Despite this, they continue to hold 293,121 ETH, valued at $563 million.
Liquidation prices have tightened significantly, now ranging from $1,562 to $1,698, attributed to their leveraged positions in Aave. With an average entry price exceeding $3,000, the firm faced mounting pressure. In recent days, Trend Research has made significant ETH deposits into Binance, utilizing the funds to reduce their Aave loan obligations. This strategy introduced significant sell-side pressure, exacerbating market momentum. As they approached critical health factor thresholds, the urgency of their actions intensified. With $563 million in ETH remaining vulnerable, any further declines in price could lead to increased sales and heightened volatility. Thus, the inquiry arises – Were their endeavors sufficient to stave off liquidation, or would they need to divest further?
Tension has been escalating among Ethereum’s largest holders recently. For instance – Joseph Lubin, together with two unidentified whales and “7 Siblings,” are perilously near their liquidation thresholds. Lubin, possessing more than 137,000 ETH, is confronted with liquidation prices dipping to $1,329. Meanwhile, “7 Siblings” commands close to 287,000 ETH, with liquidation thresholds set at $1,029. If Ethereum’s price declines further, these substantial positions might trigger forced selling, thereby intensifying the downward pressure on the market. As of this moment, Ethereum is trading at $1,930, having slipped below the $2,200 mark. At this price level, Ethereum is nearing the critical $1,400 accumulation zone. Bulls need to protect this level with unwavering resolve. Particularly as momentum indicators such as the MACD and RSI have shown significant weakness, Ethereum is currently in oversold territory – a situation not observed since 2024.
The significant sell-off, prompted by both whales and retail investors, is understandably raising alarms. The question remains – Will the market be able to absorb the massive sales from these whales? Could this be the final chance to buy before Ethereum potentially surges to $10,000? Trend Research’s sell-off may initiate additional downward momentum if ETH cannot maintain crucial levels. Ethereum’s future hinges on the market’s ability to handle this significant selling pressure.
