On October 7, Volatility Shares 2x Ether ETF fell 9.76% in regular trading, trading at $27.345 per share, with turnover of $66.45 million. The leveraged product's decline significantly outpaced spot Ether's pullback during the same period.

The primary catalyst was a sharp intraday drop in Ether, which broke below the $2,600 level. On-chain data shows a trader's 3,728 ETH long position, valued at approximately $9.85 million, was fully liquidated within three minutes as the price breached that threshold. The rapid liquidation cascaded into broader selling pressure on high-leverage long products.

Earlier, Ether had touched around $2,720 on October 6-7, with some market participants treating that area as a near-term high. A large ancient whale address deposited 13,330 ETH to Coinbase at a price of $2,728.59, suggesting potential profit-taking of roughly $36.21 million. Large short positions on Hyperliquid were also observed, including one address holding 16,095.75 ETH short with notional value near $43.86 million, reflecting hedging demand at elevated levels.

Technically, Ether had failed to hold the $2,634 support level cited in prior market commentary. With the break below $2,600, multiple leveraged longs faced liquidation thresholds, reinforcing downside momentum in ETF products designed to amplify daily moves. The two-times leverage structure mechanically magnified the spot decline into a near double-digit loss for the fund.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)