Yihui's Trend Research Sells Another 20,770 ETH, Worth $43.57 Million

Trend Research, a major institutional Ethereum holder, has sold another 20,770 ETH, valued at $43.57 million at current prices. The firm has been actively reducing its Ethereum exposure in response to declining prices and leveraged borrowing structures.

The move follows a series of similar sales since the start of February 2026, with the firm having already sold over 112,828 ETH to manage its debt. Trend has used the proceeds from these sales to repay stablecoin loans, which were used to fund additional ETH purchases through Aave-based borrowing.

The position, which peaked at 601,000 ETH, has been reduced to 488,172 ETH as of early February. The remaining holdings are valued at approximately $1.05 billion at current prices. Trend continues to operate near key liquidation thresholds, with the next potential trigger estimated at $1,558 per ETH.

Why the Deleveraging Strategy Matters

Trend Research's strategy is focused on preventing forced liquidation by voluntarily reducing leverage. As Ethereum prices fall, the value of the collateral decreases while debt remains fixed. This dynamic increases the risk of liquidation unless exposure is reduced proactively.

By selling Ethereum and repaying debt, Trend is improving its health factor, a key metric used in Aave's liquidation system. The health factor is the ratio of collateral value to debt value, and it must remain above 1 to avoid forced liquidation.

The firm's actions reflect a broader trend among institutional players who are managing risk in a highly leveraged market. Trend's approach could serve as a template for others facing similar pressure as the crypto market adjusts to lower prices and tighter liquidity.

How the Market is Responding

The controlled deleveraging by Trend Research has not yet triggered a large-scale market cascade, but the potential remains. Ethereum's 24-hour trading volume is currently around $49 billion, and a forced liquidation of even half of Trend's remaining 488,172 ETH would represent about 1% of that volume.

However, liquidity conditions during periods of stress can change rapidly. If Trend cannot reduce exposure quickly enough and the health factor drops below 1, the firm could face a full liquidation event. This would result in a large influx of Ethereum into the market, which could drive prices lower and trigger further selling.

Market observers are closely monitoring three key indicators: the behavior of Trend's health factor, the pace and size of Ethereum deposits to centralized exchanges, and the broader level of forced selling in the crypto market.

What Analysts Are Watching Next

The next threshold for Trend's position is expected to be around $1,558, which would trigger an additional round of liquidation if not managed. Analysts are watching whether Trend can continue its strategy of voluntary sales or whether it will face a sudden cascade.

On-chain data shows that Trend has deposited large amounts of Ethereum into Binance and other exchanges in recent days, indicating that centralized order books are absorbing the flow. If this trend accelerates, it may signal a shift from controlled deleveraging to panic selling.

The broader market is also under pressure from other large holders, including BitMine, which holds 4.28 million ETH and faces over $7 billion in unrealized losses. The concentration of leveraged positions among a few large players increases the systemic risk for the entire market.

Looking Ahead

The success of Trend's strategy will depend on how quickly Ethereum prices fall and how much liquidity remains in the market to absorb the flow. If the firm can stay ahead of forced liquidation, it may provide a model for others to follow.

Investors are advised to monitor both on-chain activity and broader market sentiment as these factors will determine the next phase of price movement. The ongoing liquidation of leveraged positions is a key driver of volatility in the crypto market, and Trend's actions will be closely watched as a bellwether for larger trends.