Key Takeaways
- Ethereum whales bought 323,523 ETH worth $1.12B as the price dipped below $3,000, signaling potential market recovery.
- Ethereum enters a distribution phase after August’s $4,500 peak, with recent price drops testing key support levels.
- U.S. demand weakens as the Coinbase Premium Index turns negative, but whale activity could drive ETH’s next rebound.
Ethereum (ETH) dipped below the $3,000 level earlier this week, triggering concern among retail traders. However, large holders quickly capitalized on the decline, purchasing over 323,523 ETH worth approximately $1.12 billion. This sudden influx of buying volume suggests that Ethereum’s recent price dip may present a buying opportunity for whales.
Market Cycle and Distribution Phase
CryptoQuant’s analysis indicates that Ethereum has completed a full four-stage market cycle in 2025, transitioning from decline to accumulation, followed by markup, and now entering a distribution phase. After reaching a peak of over $4,500 in August, ETH’s price began to consolidate, ultimately losing key support levels.
This market shift signals a transition from buyer-driven momentum to a more neutral-to-bearish phase. The latest decline has seen over $39 million in long positions liquidated on Binance, the largest liquidation event since early October.
Negative Premium Signals Weak U.S. Demand
Ethereum’s price action has also been affected by the Coinbase Premium Index, which recently dropped to -0.057. This metric, which compares U.S. exchange prices with global prices, indicates weakening demand from American investors.
Throughout Ethereum’s mid-year rally, U.S. buyers paid a premium, but the shift to a negative premium signals that U.S. investors may be stepping back or selling into strength.
Despite the bearish sentiment, large Ethereum holders are actively purchasing ETH during the price dip. After briefly falling below $3,000, Ethereum bounced back to around $3,315. This price action suggests that the $3,000 level remains a critical support zone, with whales defending it against further downside pressure. The next major resistance level is expected between $3,250 and $3,400.
Santiment’s data on Ethereum’s social sentiment shows a sharp increase in bearishness, which historically has coincided with local price bottoms. This, combined with whale buying activity, suggests that Ethereum could be nearing a short-term bottom.
While Ethereum’s price remains stuck in the $2,900 and $3,400 range, any sustained recovery above $3,200 could open the path for a potential rebound toward higher resistance levels. However, failure to hold the $3,000 support could lead to further declines toward the $2,700 level.
