Ethereum is entering a dangerous zone ⚠


A massive leveraged $ETH long just imploded — and it happened while exchange supply is near multi-year lows. That’s a volatile mix.


Trend Research unwound a $2.6B leveraged ETH position, realizing a ~$750M loss after repaying Aave loans. The key detail? This exit didn’t happen in a deep, liquid market.


📉 ETH on exchanges is now down to ~16M ETH, levels last seen in 2016 — back when Ethereum was barely born. Today, it’s a multi-trillion-dollar ecosystem. Liquidity is thin, and that makes price discovery fragile.


Meanwhile, not everyone is bearish:

– Tom Lee–backed Bitmine added 20,000 ETH

– Another large buyer scooped 6,316 ETH near $2,100


📊 Technically, ETH is weak: down ~37% from highs, RSI near 31, strong bearish trend (ADX elevated). But thin supply means moves can get violent — both ways.


Low liquidity + forced unwinds = instability. Buckle up.

image
February 09, 2026 at 2:28 PM
60
3
1