Ethereum Price Could Hit Bottom Soon Amid $862M Fund Liquidation Risk

Ethereum Price News: Number of Days Spent in Profit for ETH

Ether price slid to a year-to-date low of $1,927 on Thursday. Even after a small bounce, the token still trades more than 60% below its $4,950 all-time high.

Analysts said the drop is now testing holders conviction in real time. They also pointed to on-chain signals and rising exchange inflows as early signs that a bear phase may be taking hold.

Still, the selling has not scared everyone away. A pocket of Ether holders has been buying into the weakness. The bigger question is whether that demand is strong enough to push ETH back above $2,000.

Major Ethereum Fund Nears $862M Liquidation Threat

Ether is still feeling the weight of forced selling as a major leveraged trade unwinds. Analysts said Jack Yis Trend Research built the position through Aave, borrowing stablecoins against ETH. At its peak, the debt reportedly climbed to around $958 million.

Now that Ethereum is trading lower, the fund has been cutting risk step by step. It has been selling ETH to repay loans and keep the position from slipping into a dangerous liquidation zone.

On Feb. 4, Trend sent another 10,000 ETH to Binance, worth about $21.2 million, with plans to sell and repay loans. On-chain tracker Lookonchain flagged the move. Even after those sales, the position remains huge. Trend still holds about 488,172 ETH, valued near $1.05 billion at current prices.

The pullback started earlier in February. Trend sold 33,589 ETH, roughly $79 million, then used about $77.5 million in USDT to cut its debt. That repayment lowered the reported liquidation line from $1,880 to $1,830.

The Feb. 4 sale showed Trend is still retreating in a measured way. Analysts said the goal is straightforward: raise cash, pay down debt, and keep the position safe as Ethereum continues to slide.

That is why traders are watching so closely. In thin liquidity, a billion-dollar unwind can snowball. The selling itself is one problem, but the knock-on effects can hit even harder and push the market down faster than the numbers suggest.