Ethereum whales accumulated over 320,000 ETH worth more than $1.1 billion in two days as prices dipped below $3,000, countering heavy liquidations and hinting at a potential bottom, though analysts caution that U.S. demand weakness could make recovery fragile without support above $3,400.
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Ethereum price tumbled under $3,000 amid $39 million in liquidations on Binance, marking the largest flush since early October.
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Whale purchases of 323,000 ETH provided quick rebound support, pushing prices back to around $3,315.
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Analysts from CryptoQuant note Ethereum entering a distribution phase, with U.S. Coinbase Premium at -0.057, its lowest since April, signaling reduced domestic buying.
Ethereum whales accumulate $1B amid price dip: Discover how large investors are buying the dip as analysts warn of fragile recovery and weak U.S. demand. Stay informed on ETH trends—read now!
What Is Driving Ethereum Whales to Accumulate Over $1 Billion in ETH?
Ethereum whales accumulation refers to large investors purchasing substantial amounts of ETH during market dips, as seen recently when whales bought over 323,000 ETH worth approximately $1.12 billion in 48 hours. This activity followed a sharp price drop below $3,000 triggered by aggressive liquidations totaling $39 million on Binance. On-chain data from trackers like Lookonchain highlights how these moves stabilized ETH around $3,315, suggesting institutional defense of key support levels despite Bitcoin’s decline under $100,000.
How Fragile Is Ethereum’s Current Recovery According to Analysts?
Analysts warn that Ethereum’s recovery remains precarious due to structural market shifts. Data from CryptoQuant shows ETH transitioning into the final distribution phase of its year-long cycle after peaking above $4,500 in summer, losing major AVWAP supports from 2021 and 2024 highs. Market researcher Markus Thielen of 10x Research notes fading institutional demand, citing BitMine’s slowing treasury accumulations as evidence of cash constraints. He states, “The real question is who the next big buyer will be—ETF inflows have slowed, and treasury demand has weakened.” Without holding $3,000, prices could correct toward $2,700–$2,800. The Coinbase Premium Index at -0.057 indicates U.S. traders stepping back, contrasting summer’s premium-driven rally. Santiment reports a spike in bearish sentiment, the second-largest in six months, often preceding local bottoms when combined with whale buys. For sustained momentum, ETH must reclaim $3,200 and build support above $3,600–$3,800 resistance. This neutral-to-bearish mode echoes post-October 10th reversals, emphasizing the need for renewed U.S. or institutional inflows to avoid stalling between $3,250 and $3,400.
Frequently Asked Questions
What Caused Ethereum’s Recent Price Drop Below $3,000?
Ethereum’s price fell below $3,000 due to a wave of liquidations wiping out $39 million in long positions on Binance, the largest since early October. This occurred amid Bitcoin’s slide under $100,000, amplifying broader market downturns and testing psychological support levels not breached in months.
Will Whale Accumulation Lead to a Strong Ethereum Rebound?
Whale accumulation of over $1.1 billion in ETH has supported a rebound to $3,315, but analysts like those at 10x Research suggest it may only provide temporary relief. Without positive U.S. demand signals or institutional inflows, recovery could remain capped, sounding natural for voice queries on market stability.
Key Takeaways
- Whale Buying Power: Large investors purchased 323,000 ETH worth $1.12 billion, offsetting liquidations and driving a quick price recovery from $2,970 lows.
- Market Phase Shift: CryptoQuant data confirms Ethereum’s entry into distribution after summer highs, with lost supports indicating fading bullish momentum.
- U.S. Demand Indicator: Negative Coinbase Premium signals trader caution; monitor for positive turns to gauge potential upside toward $3,400 or higher.
Conclusion
Ethereum whales accumulation of over $1 billion underscores investor confidence in ETH’s long-term value amid volatile dips below $3,000, yet analysts highlight fragile recovery risks from weak U.S. demand and distribution phases. As on-chain metrics like Santiment’s sentiment washout suggest exhaustion, holding key levels will be crucial. Investors should watch for institutional inflows to fuel sustainable gains, positioning Ethereum for potential stability in the evolving crypto landscape—stay tuned for updates on these dynamics.
