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

Key Insights:

• Ethereum price could hit bottom soon before Bitcoin does, says expert.
• Ether price slid to a year-to-date low of $1,927 on Thursday.
• Meanwhile, a major fund risks $862M Liquidation

A leading market analyst believes Ethereum price will hit its bottom months before Bitcoin does. In their view, the reason is simple: altcoins tend to move through liquidity cycles faster. So, the pain often shows up earlier and ends sooner.

That thinking is starting to show up on the charts. Several signals now point to Q2 2026 as a possible window for ETH price to carve out a durable low.

At the same time, the market looks like it has entered capitulation. Traders are locking in losses, and realized losses could climb sharply if prices stay under pressure.

Meanwhile, a separate stress point is adding fuel to the downside. Jack Yi’s Trend Research is still unwinding a large leveraged Ethereum trade built through Aave.

The position reportedly peaked at about $958 million in borrowed stablecoins. Besides, it has been shrinking as the fund sells ETH to defend the trade and repay loans while Ethereum slides.

Ethereum Price Prediction: ETH Could Bottom in Q2 2026

Alphractal CEO Joao Wedson said Ethereum is likely to find its market bottom months before Bitcoin does. He pointed to a familiar pattern in crypto. In his view, altcoins move through liquidity cycles faster. So, they often hit exhaustion earlier than Bitcoin (BTC).

Some of the charts he tracks already hint at a turning point in Q2 2026. That period, he suggested, could be when  Ethereum (ETH) price finally puts in a more durable low.

For now, the mood remains brutal. Wedson said capitulation is already here, and he expects realized losses to rise sharply as more traders lock in pain.

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 Yi’s 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.

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