Ethereum’s volatile week saw its price briefly tumble below the $3,000 threshold, unsettling traders after days of aggressive liquidations.
- Ethereum fell under $3,000 for the first time in months amid heavy liquidations.
- Whales purchased over 320,000 ETH in two days, worth more than $1.1 billion.
- Analysts say U.S. demand remains weak, and the recovery could stall below $3,400.
Yet just as panic spread across markets, large investors appeared to step in — providing what may be temporary relief for the second-largest cryptocurrency.
Whale Accumulation Offsets Liquidations
According to on-chain tracker Lookonchain, Ethereum whales collectively bought more than 323,000 ETH (around $1.12 billion) over the past 48 hours. The accumulation followed a wave of liquidations that wiped out roughly $39 million in long positions on Binance — the largest single-day flush since early October.
After briefly touching lows near $2,970, ETH quickly rebounded, trading around $3,315 by Wednesday. The move suggests that institutional holders are still defending key psychological levels despite the broader market downturn led by Bitcoin’s slide under $100,000.
Signs of Exhaustion in the Market Cycle
Data from CryptoQuant indicates that Ethereum has now entered the final “distribution” phase of its year-long market cycle, following a summer peak above $4,500. The shift from accumulation to distribution signals fading bullish control, as ETH lost several major AVWAP supports linked to its 2021 and 2024 highs.
Analysts view this as a structural cooling period after a prolonged markup phase. “The market has shifted into neutral-to-bearish mode,” one report said, noting that the breakdown mirrors the sentiment reversal seen after the October 10th crash.
U.S. Traders Step Back
The Coinbase Premium Index, which compares ETH prices on Coinbase and Binance, fell to -0.057, its lowest level since April. A negative reading means U.S. traders are no longer paying a premium for ETH — a stark contrast to the summer rally, when domestic buyers led the charge.
This shift implies that U.S. investors are either reducing exposure or selling into strength. Until the premium turns positive again, analysts believe Ethereum’s rebound momentum will likely remain capped between $3,250 and $3,400.
Institutional Confidence Wavers
Market researcher Markus Thielen, founder of 10x Research, warned that institutional demand for ETH is fading rapidly. He pointed to BitMine, the largest known Ethereum treasury holder, as an example of how corporate buyers are reaching their limits.
“BitMine has been steadily accumulating Ethereum for months, but the firm appears to be running out of cash,” Thielen wrote. “The real question is who the next big buyer will be — ETF inflows have slowed, and treasury demand has weakened.”
Thielen added that unless ETH holds the $3,000 level, a sharper correction could follow, possibly driving prices toward $2,700–$2,800.
Sentiment Suggests a Local Bottom
Despite the uncertainty, on-chain analytics platform Santiment reported a steep rise in bearish sentiment — the second-largest negative reading in six months. Historically, such spikes in pessimism have often preceded local bottoms.
😱 Bitcoin’s drop to $98.9K and Ethereum’s to $3.09K may have your timeline showing fellow traders left in shambles. But social data indicates there are still many buying dips with confidence. We look at $BTC, $ETH, & $XRP sentiment after the bloodbath. 👇https://t.co/smG1LYyI77 pic.twitter.com/SdEusnzXUv
— Santiment (@santimentfeed) November 5, 2025
Combined with whale accumulation, this sentiment washout may indicate that selling pressure is nearing exhaustion. For a sustained recovery, however, Ethereum will need to regain $3,200 with conviction and establish support above its short-term resistance zone near $3,600–$3,800.
As markets digest another round of liquidations and structural weakness, Ethereum’s bounce above $3,000 offers a temporary sigh of relief — but without renewed U.S. demand or institutional inflows, that stability may prove fragile.
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Source: https://coindoo.com/whales-accumulate-1b-in-ethereum-as-analysts-warn-of-fragile-recovery/