The investment firm Trend Research, led by Jack Yi, has completed the total sale of its Ether position, recording losses close to 750 million dollars. According to Lookonchain data, the entity moved 651,757 ETH to Binance, marking a milestone of institutional capitulation while the Ethereum price tries to stabilize after weeks of high volatility.
This massive exit movement, which was executed at an average value of 2,055 dollars per unit, leaves the firm with a practically zero residual holding. Upon confirming the closure of these operations, analysts suggest that this type of forced sales often precede a trend change in the currently depressed Ethereum price.
The collapse of a leveraged strategy on the Aave DeFi protocol
On the other hand, the thunderous fall of funds originated from a recursive investment strategy built on the Aave lending protocol. By using ETH as collateral to obtain stablecoins and buy more assets, the firm increased its risk exposure, which caused the decline in the Ethereum price to bring the position closer to the liquidation threshold.
Likewise, the decision to voluntarily unwind the position avoided a forced liquidation that would have had even more devastating consequences for the market. Nonetheless, the impact of selling more than 1.3 billion dollars in assets has intensified the debate about whether the cryptocurrency is finally reaching its lowest support level in this current cycle.
In addition to the pessimism generated by Trend Research, other firms like BitMine have opted for a diametrically opposite strategy by accumulating assets during the drop. While some flee from risk, BitMine recently acquired 42 million dollars in Ether, betting on a long-term recovery despite the fact that the Ethereum price has retreated thirty percent recently.
Does this institutional capitulation represent the market bottom for Ether?
On the other hand, various technical analysts consider this massive exit to be a classic “capitulation” signal, an event that historically occurs near local lows. Since the market appears to be oversold, some experts point out that the second quarter of 2026 could mark the start of a solid recovery phase for smart contract blockchain technology.
However, the outlook remains uncertain while relative strength indicators touch levels typical of a deep bear market. Therefore, institutional investors maintain caution, observing whether selling pressure will persist or if, conversely, the absorption of these large amounts of ETH by new buyers will stop the bleeding in the Ethereum price.
It is also relevant to highlight that the liquidity cycle of altcoins usually anticipates that of Bitcoin, which gives some hope to the bulls. By closing these leveraged positions, the market is cleansed of excess risk, allowing the Ethereum price to build a more organic base that is less dependent on the massive borrowing of large hedge funds.
Finally, the outcome of this financial story will serve as a reminder of the dangers of excessive leverage in volatile markets. It is expected that the reduction of available supply in weak hands will strengthen the market structure, opening the door to a scenario where the Ethereum price can recover lost levels once institutional sentiment regains confidence.
