Ethereum (ETH) experienced a significant drop below $3,000 earlier this week, marking a crucial milestone as the altcoin’s price dipped below this key psychological level for the first time since early November 2024. At the time of writing, Ethereum was trading at $2,645 after a 3% decline in the past 24 hours.
Despite the negative impact on wallets that had purchased ETH above $3,000, the price drop presented a buying opportunity for whales and institutions looking to accumulate the digital asset. Data from IntoTheBlock highlighted a surge in large holder netflows from -109,160 ETH to 174,000 ETH over the course of just four days, indicating increased buying activity from whales.
Whales, or large addresses, typically accumulate during price dips and sell when prices are high, suggesting that the rising inflows may signal that Ethereum has reached a bottom and could potentially see a recovery in the near future. Additionally, the concentration of Ethereum held by whales has increased from 37% to 43% over the past year, indicating their significant influence on the market and potential impact on price volatility.
Institutions have also been actively accumulating Ethereum, with weekly inflows to Spot Ethereum exchange-traded funds (ETFs) reaching a 2025 high of $420 million. This surge in institutional demand following the price drop below $3,000 suggests that institutions remain optimistic about Ethereum’s long-term performance.
The In Out of the Money Around Price (IOMAP) metric identified a key demand zone for Ethereum between $2,383 and $2,459, where 2.21 million addresses purchased ETH. This zone could serve as a crucial entry point for buyers and act as a level of support for the cryptocurrency. If Ethereum retests this demand zone and confirms buyer strength, it could potentially trigger a price recovery.
However, despite the increased interest from whales and institutions, network activity on the Ethereum mainnet has been declining. Recent reports have indicated that Ethereum’s gas fees have reached a 2025 low, suggesting reduced network usage. This decline in network activity could have implications for Ethereum’s future price performance.
Overall, the recent price drop below $3,000 has sparked increased buying activity from whales and institutions, indicating a potential shift in market sentiment towards Ethereum. As the market continues to evolve, it will be interesting to see how these developments impact the future price trajectory of Ethereum.