Life-and-Death Pressure Surrounding ETH: Will the Shrimp Keep Selling Off or Is the Market Ready to Absorb?

Ethereum is facing one of the most dangerous moments of 2026. With the current price at $1.97K, ETH has lost higher price zones, and the market’s big question now is not whether whales can sustain their positions, but whether liquidity providers have enough capacity to absorb the upcoming sell-off.

Whale Trend Research Liquidates $322.5 Million USD – Is This Just the Beginning?

In just 10 hours on February 6, Trend Research quickly liquidated 170,033 ETH worth $322.5 million USD to cover Aave loans. This is not a subtle move — it’s a planned run by whales as they realize their positions are under threat.

But this is only the tip of the iceberg. Trend Research still holds 293,121 ETH valued at approximately $563 million USD. With an average price around $3,000, their liquidation levels are in a tense range from $1,562 to $1,698. If ETH continues to decline, these whales will be forced to sell more, creating additional pressure on the market.

Joseph Lubin and 7 Siblings: When Big Players Fall Into the Liquidation Spiral

But Trend Research is not the only one in a dangerous position. Joseph Lubin, co-founder of Ethereum, currently holds 137,000 ETH with liquidation levels at $1,329. Another entity, 7 Siblings, holds 287,000 ETH with an even lower liquidation threshold at $1,029.

These figures are not just on-chain data — they are dangerous boundaries. If ETH drops further, the forced liquidation chain of these massive positions could be triggered, amplifying downward pressure in an already fearful market. A sell-off from Lubin or 7 Siblings would be a shock that the whale-maintained price might not withstand.

Weak Indicators and the $1,400 Accumulation Zone – Where Whales Must Draw the Line to Protect

From technical indicators, the outlook is worsening. MACD and RSI are both at extremely weak levels, indicating oversold conditions unseen since 2024. ETH has lost the $2,200 zone and is now trading very close to a key support level.

The $1,400 accumulation zone is the last line of defense whales can rely on. This is where major liquidity providers must defend at all costs. If this zone is breached, the liquidation chain could start flowing from all directions.

If Whales Cannot Absorb It – The Liquidation Chain Could Begin

The core issue is that the current sell-off volume exceeds the market’s absorption capacity. If Trend Research, Lubin, or any other whales are forced to liquidate due to freefalling prices, we could see a wick sweep down to $1,400. This could be the “final dump” before any significant recovery to $10,000 is even considered.

Whales are selling to cover their loans. The question now is: are you willing to buy at $1.97K or wait to see if Lubin’s liquidation at $1,329 actually happens?

Disclaimer: Information from Trading Insight is for reference only and not investment advice. Please conduct thorough research before making any decisions.