Major Asian Ethereum Position Exits Amid Market Pressure
Trend Research, the firm led by Jack Yi, has completely exited its Ethereum exposure in what appears to be a forced liquidation. Data from Arkham shows the company executed its final position closure this Sunday, marking the end of a risk reduction process that intensified as market conditions deteriorated.
What makes this particularly interesting is the timing. Just days before the total shutdown, Jack Yi himself posted optimistic messages predicting Ether would climb above $10,000. But market pressure and the cost of leverage apparently forced a brutal exit that resulted in million-dollar losses. It shows how even the largest players can get caught when volatility spikes and liquidity dries up.
I think this highlights something important about leveraged positions in crypto. They work beautifully when markets move in your favor, but the margin calls come fast when things turn. The spot market doesn’t care about your predictions or reputation.
On-Chain Data Tells a Different Story
Despite this institutional exit, Ethereum’s fundamental indicators are painting a narrative of long-term strength. The so-called “accumulating addresses”—wallets holding more than 100 ETH without making withdrawals—now control 27 million units. That’s nearly a quarter of the asset’s total supply.
These aren’t traders looking for quick profits. They’re strategic holders building positions over years, not weeks. The accumulation has been steady, and these addresses continue to add to their holdings even as leveraged positions get liquidated.
Recent analysis from CryptoQuant suggests something interesting about current prices. They’re in what appears to be a historically attractive zone for spot capital entry. This is only the second time in Ethereum’s history that it has traded below the realized price of these accumulation wallets.
The Historical Pattern That Might Matter
That last point deserves attention. The previous time Ethereum traded below this level, it preceded a significant market recovery. Now, I’m not saying history will repeat exactly—markets never do—but patterns like this get noticed by institutional investors.
What we’re seeing is a divergence between short-term leveraged players and long-term strategic holders. While traders face painful liquidations, these accumulating addresses continue to absorb available supply. They’re buying what others are being forced to sell.
It creates an interesting dynamic. The market will now watch to see if this capitulation of long positions in Asia marks something like a floor. Not necessarily the absolute bottom—markets rarely give such clear signals—but perhaps a level where selling pressure from leveraged positions has been exhausted.
Looking Forward
The real question is whether organic accumulation can drive the next upward move. Without leverage fueling the rise, any recovery might be slower but potentially more sustainable. These accumulating addresses aren’t going to panic sell at the first sign of trouble—they’ve already demonstrated patience.
Perhaps what we’re witnessing is a shift in market structure. Less leverage, more spot accumulation. That could mean fewer dramatic spikes but also fewer catastrophic liquidations. It might be healthier for the ecosystem in the long run, even if it makes for less exciting short-term price action.
Only time will tell, but the data suggests two parallel stories: one of forced exits by leveraged players, and another of steady accumulation by long-term holders. Both are happening simultaneously, which makes the current moment particularly interesting to watch.
